William was feeling quite pleased with his company's performance last year. Sales of its power strips with USB ports were strong, and last year it reported positive income for the first time since its inception. William is charged with putting together this coming year's budgeted income statement. The intention is to build some inventory for the future, since the company completely ran out of stock last year. Because it is still a relatively new company, management wants to consider how a few different denominator levels would affect its fixed-MOH rate. The following information shows originally budgeted amounts for this year. Selling price Budgeted variable manufacturing costs Budgeted fixed-MOH cost Theoretical capacity Practical capacity Normal capacity (a) $10 per unit $5 per unit $288,000 150,000 units 128,000 units 90,000 units Calculate the budgeted fixed-MOH rate for each denominator level. (Round answers to 2 decimal places, e.g. 15.25.) Budgeted fixed-MOH Rate Theoretical level /unit Practical level $ /unit Normal level $ /unit (b) Calculate the budgeted fixed-MOH rate for each denominator level. (Round answers to 2 decimal places, e.g. 15.25.) Budgeted fixed-MOH Rate Theoretical level $ 1.92 /unit Practical level $ 2.25 /unit Normal level eTextbook and Media List of Accounts Your answer is partially correct. 3.20/unit Determine the fixed-MOH volume variance for each denominator level, assuming the company produces 122,000 units this year (and sells 115,000). (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to O decimal places, e.g. 5,125.) Fixed-MOH Volume Variance Theoretical level $ 562000 Unfavorable Practical level $ 352000 Unfavorable Normal level 198000 Favorable