Please finish the rest of Requirement 1, and complete requirement 2.

Homework: Chapter 9 Exercises Question 3, P9-37 (simil... Part 5 of 13 HW Score: 3.24%, 0.65 of 20 points Points: 0.65 of 4 Save Tolman Lager has just purchased the Pittsburgh Brewery. The brewery is two years old and uses absorption costing. It will "sel" its product to Tolman Lager at $44 per barrel. Peter Bryant, Tolman 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 C. Requirement 1. Compute the budgeted fixed manufacturing overhead rate per barrel for each of the denominator-level capacity concepts. Explain why they are different. Begin by determing the formula to calculate the budgeted fixed manufacturing overhead rate per barrel, then compute the rate for each of the denominator-level capacity concepts. (Abbreviations used: Budg. = budgeted, MOH = manufacturing overhead. Round the rates to the nearest cent.) Budgeted fixed MOH rate per barrel Data table Budg. fixed MOH per period 1 Budg. denominator level (barrels) = 28,100,000/ 4,276,800 = $ 6.57 28,100,000 3,520,000 = $ 7.98 Theoretical capacity $ Practical capacity $ Normal capacity utilization $ Master-budget capacity for each half year (a) JanuaryJune 2017 28,100,000/ 2,851,200 = $ 9.86 Denominator-Level Capacity Concept Theoretical capacity Practical capacity Normal capacity utilization Master-budget capacity utilization for each half year: (a) JanuaryJune 2017 (b) July-December 2017 Budgeted Fixed Manufacturing Overhead per Period $ 28,100,000 $ 28,100,000 $ 28,100,000 Days of Hours of Production Production Barrels per per Period per Day Hour 360 22 540 352 20 500 352 20 405 -X Requirements $ 176 20 325 14,050,000 14,050,000 $ 176 20 485 Print Done 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 0 Production in barrels 2,610,000 Ending inventory in barrels, 12-31-2017 220,000 Actual variable manufacturing costs $ 78,561,000 Actual fixed manufacturing overhead costs $ 27,200,000 There are no variable cost variances. Fixed manufacturing overhead cost variances are written 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