Smith Company uses standard costing Tim Fleiding, the new president of Smith Company is presented with the following data for 2017 Click the icon to view the data) BRONTO Requirement 1. At what percentage of denominator level was the plant operating dung 2017 Determine the formula, and then calculate at what percentage of denominator level the plant was operating during 2017 of denominator level the nearesident of Smith Company is presented with the following data for 2017 Data - X Smith Company Income Statements for the Year Ended December 31, 2017 Variable Absorption Costing Costing Revenues $8,850,000 S 8,850,000 Cost of goods sold (at standard costs) 4.655.000 5.890.000 Fixed manufacturing overhead (budgeted) 1.400.000 Fixed manufacturing overhead variances (all unfavourable) 110,000 110,000 Spending heck Answer O 2 Data - X 110,000 Fixed manufacturing overhead variances (all unfavourable) Spending 110,000 Production volume Total marketing and administrative costs (all fixed) 1,560,000 Total costs 7.725,000 S 1,125,000 $ Operating income 490.000 1,560,000 8,050,000 800,000 Inventories (at standard costs) December 31, 2016 December 31, 2017 $ 1255.000 $ 1.710.000 55,000 185.000 Check Answer Tea for 2017 1. At what percentage of denominator level was the plant operating during 2017? 2. How much fixed manufacturing overhead was included in the 2016 and the 2017 ending inventory under absorption costing? 3. Reconcile and explain the difference in 2017 operating incomes under variable and absorption costing 4. Tim Fielding is concerned. He notes that despite an increase in sales over 2016, 2017 operating income has actually declined under absorption costing Explain how this occurred