The Brewery is able to produce 0.5 barrels per hour at maximum efficiency. Due to unavoidable operating interruptions, production actually averages 0.475 barrels per working hour. There are three 8-hour shifts each day. Due to union and legal restrictions, the plant actually operates three 7-hour shifts per day and works 28 days per 30-day average month. Based on the current budget, Castle estimates that it will only be able to sell only 2,500 barrels this year but that demand in the future will normalize around 2,800 barrels.

Additional Info:

Budget fixed overhead for the year : $27,900

Actual Production for the year(barrels): 2,671

Actual sales for the year (barrels) : 2,460

Actual fixed overhead for the year: $26,700

IN EXEL!!

Budgeted Fixed OH Variable Costing Absorption Costing, Practical Cap Absorp Cost, Normal Cap Absorp Cost, Budgeted Vol.

Denominator Level Used in the Budgeted F-OH Allocation Rate VC PC NC BV

Budgeted fixed overhead allocation rate VC PC NC BV

Units produced VC PC NC BV

Fixed Overhead allocated into inventory VC PC NC BV

Actual fixed overhead (same as above)

Over- (Under-) allocated fixed overhead

Fixed overhead expensed to COGS for sold units

Fixed overhead written off to COGS (+ for expense, - for benefit)

Total Fixed overhead expensed in year

REQUIRED: Complete the following statements: (Assuming that inventory levels are growing over time)

As the denominator level increases, the allocation rate per unit

As the denominator level increases, the overhead expensed for sold units

As the denominator level increases, the overhead expensed for under-allocated overhead

As the denominator level increases, the total overhead expensed