Rev Motors is a manufacturer of the very popular HotDog motorcycles. The management at Rev Motors has recently adopted absorption costing and is debating which denominator-level concept to use. The HotDog motorcycles sell for an average price of $8,400. Budgeted fixed manufacturing overhead costs for 2020 are estimated at $3,024,000. Rev Motors uses subassembly operators that provide component parts. The following are the denominator-level options that management has been considering: 1) Theoretical capacity-based on two shifts, completion of three motorcycles per shift, and a 360-day year-2 x 3 x 360- 2,160. 2) Practical capacity-theoretical capacity adjusted for unavoidable interruptions, breakdowns, and so forth-2 x 2 x 320 = 1,280 3) Normal capacity utilization estimated at 560 units. 4) Master-budget capacity utilization the strengthening stock market and the growing popularity of motorcycles have prompted the marketing department to issue an estimate for 2020 of 960 units. REQUIRED: 1) Calculate the budgeted fixed manufacturing overhead cost rates under each concept. (Round your answers to two decimal places.) 2) What are the benefits to Rev Motors of using either theoretical capacity or practical capacity