Superior Lager has just purchased the Atlanta Brewery The brewery is two years old and uses absorption costing it will sell its product to Superior Lager al 545 per barrel. Peter Bryant, Superior Lager's controller, obtains the following information about Atlanta Brewery's capacity and budgeted foxed manufacturing costs for 2017 (Click the icon to view the information) Read the tesurements - X. Explain why they are Requireme different Data Table of the denominator-level Begin by die capacity co Budgeted Fixed Manufacturing Overhead per Period 5 27 800,000 5 27,800,000 $ 27,800.000 Days of Hours of Production Production Barrels per per Period per Day Hour 362 24 550 352 20 490 352 20 395 Theoretica Denominator Level Capacity Concept Theoretical capacity Practical capacity Normal capacity utilization Master budget capacity utilization for each half year: fa) January June 2017 (b) July-December 2017 Practical Normel cas $ 325 176 176 13.900.000 13 900,000 20 20 s Master buc (8) January (b) Juty-- 465 Explain whe Requiremenili The theore normal cop The six-mon d production al capacity. (b) practical capacity, and (c) Requireme normal capd 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 Atlanta Brewery reported these production results Beginning inventory in barrels, 1-1-2017 0 Production in barrels 2,660,000 Ending inventory in barrels, 12-31-2017 230,000 Actual variable manufacturing costs 30.066.000 Actualfood manufacturing overhead costs $ 26,800,000 There are no variable cost variance, Fixed manufacturing overhead cost variances are written off to cost of goods sold in the period in which they occur Compute the Atlanta Brewery's operating income when the denominator-level capacity is (a) theoretical capacity. (b) practical clipacity, and (c) normal capacity utilization Begin by co cent) concept (Round the rates to the nearest Donal Choose fron Print Done 2 parts remainin Check