% P9-37 (similar to) Question Help Lucky Lager has just purchased the Pittsburgh Brewery The brewery is two years old and uses absorption costing It will "sell its product to Lucky Lager at $43 per bar Peter Bryant, Lucky Lager's controller, obtains the following information about Pittsburgh Brewery's capacity and budgeted fixed manufacturing costs for 2017 (Click the icon to view the information) Read the requirements Requirements - X pominator-level capacity concepts. Explain why they are then compute the rate for each of the denominator-level rates to the nearest cent) Budgeted fixed = MOH rate per barrel 5.90 1. Compute the budgeted fixed manufacturing overhead rate per barrel for each of the denominator-level capacity concepts. Explain why they are different 2. In 2017, the Pittsburgh Brewery reported these production results: Beginning inventory in barrels, 1-1 2017 Production in barrels 2,620,000 Ending inventory in barrels, 12-31-2017 190,000 Actual variable manufacturing costs $ 79,517,000 Actual foed manufacturing overhead costs $ 27.200,000 There are no vanable cost variances. Fixed manufacturing overhead cost variances are wntten off to cost of goods sold in the period in which they occur Compute the Pittsburgh Brewery's operating income when the denominator level capacity is (a) theoretical capacity, (b) practical capacity, and (c) normal capacity utilization 100 - $ boo = 5 10o = s 7 98 9 87 po = $ po = $ 12 20 8.29 Print Done Viewule normation e requirements 6 Data Table ement 1. Comp why they ninator le by determing the ity concepts. (Abi Days of Production per Period 362 Hours of Production Barrels per Dayper Hour Budgeted Fixed Manufacturing Overhead per Period $ 28,200,000 S 28,200,000 $ 28,200,000 600 Denominator-Level Capacity Concept Theoretical capacity Practical capacity Normal capacity utilization Master-budget capacity for each half year (a) January, June 2017 (b) July-December 2017 520 retical capacity tical capacity 420 al capacity utiliza S $ 14,100,000 14,100,000 500 Per-budget capacity January-June 2011 July-December 20 Print Done lain why the ate di er any number in the edit fields and then click Check Answer % P9-37 (similar to) Question Help Lucky Lager has just purchased the Pittsburgh Brewery The brewery is two years old and uses absorption costing It will "sell its product to Lucky Lager at $43 per bar Peter Bryant, Lucky Lager's controller, obtains the following information about Pittsburgh Brewery's capacity and budgeted fixed manufacturing costs for 2017 (Click the icon to view the information) Read the requirements Requirements - X pominator-level capacity concepts. Explain why they are then compute the rate for each of the denominator-level rates to the nearest cent) Budgeted fixed = MOH rate per barrel 5.90 1. Compute the budgeted fixed manufacturing overhead rate per barrel for each of the denominator-level capacity concepts. Explain why they are different 2. In 2017, the Pittsburgh Brewery reported these production results: Beginning inventory in barrels, 1-1 2017 Production in barrels 2,620,000 Ending inventory in barrels, 12-31-2017 190,000 Actual variable manufacturing costs $ 79,517,000 Actual foed manufacturing overhead costs $ 27.200,000 There are no vanable cost variances. Fixed manufacturing overhead cost variances are wntten off to cost of goods sold in the period in which they occur Compute the Pittsburgh Brewery's operating income when the denominator level capacity is (a) theoretical capacity, (b) practical capacity, and (c) normal capacity utilization 100 - $ boo = 5 10o = s 7 98 9 87 po = $ po = $ 12 20 8.29 Print Done Viewule normation e requirements 6 Data Table ement 1. Comp why they ninator le by determing the ity concepts. (Abi Days of Production per Period 362 Hours of Production Barrels per Dayper Hour Budgeted Fixed Manufacturing Overhead per Period $ 28,200,000 S 28,200,000 $ 28,200,000 600 Denominator-Level Capacity Concept Theoretical capacity Practical capacity Normal capacity utilization Master-budget capacity for each half year (a) January, June 2017 (b) July-December 2017 520 retical capacity tical capacity 420 al capacity utiliza S $ 14,100,000 14,100,000 500 Per-budget capacity January-June 2011 July-December 20 Print Done lain why the ate di er any number in the edit fields and then click Check