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Thunder Bolt, Inc., is a manufacturer of the very popular G36 motorcycles. The management at Thunder Bolt has recently adopted absorption costing and is debating

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Thunder Bolt, Inc., is a manufacturer of the very popular G36 motorcycles. The management at Thunder Bolt has recently adopted absorption costing and is debating which denominator-level concept to use. The G36 motorcycles sell for an average price of $8,300. Budgeted fixed manufacturing overhead costs for 2020 are estimated at $4,536,000. Thunder Bolt, Inc., uses subassembly operators that provide component parts. The following are the denominator-level options that management has been considering: Click the icon to view the options.) Read the fequirements BE Requirement 1. Calculate the budgeted fixed manufacturing overhead cost rates under each concept (Round your answers to two decimal places.) Budgeted fixed Denominator level manufacturing capacity concept overhead cost rate Theoretical Question Viewer Practical Normal Master-budget 1. Calculate the budgeted fixed manufacturing overhead cost rates under the four denominator-level concepts. 2. What are the benefits to Thunder Bolt, Inc., of using either theoretical capacity or practical capacity? 3. Under a cost-based pricing system, what are the negative aspects of a master-budget denominator level? What are the positive aspects? Print Done Thunder Bolt, Inc., is a manufacturer of the very popular G36 motorcycles. The management at Thunder Bolt has recently adopted absorption costing and is debating which denominator-level concept to use. The G36 motorcycles sell for an average price of $8,300. Budgeted fixed manufacturing overhead costs for 2020 are estimated at $4,536,000. Thunder Bolt, Inc., uses subassembly operators that provide component parts. The following are the denominator-level options that management has been considering: Click the icon to view the options.) Read the fequirements BE Requirement 1. Calculate the budgeted fixed manufacturing overhead cost rates under each concept (Round your answers to two decimal places.) Budgeted fixed Denominator level manufacturing capacity concept overhead cost rate Theoretical Question Viewer Practical Normal Master-budget 1. Calculate the budgeted fixed manufacturing overhead cost rates under the four denominator-level concepts. 2. What are the benefits to Thunder Bolt, Inc., of using either theoretical capacity or practical capacity? 3. Under a cost-based pricing system, what are the negative aspects of a master-budget denominator level? What are the positive aspects? Print Done

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