Castle Lager has just purchased the Jacksonville Brewery. The brewery is two years old and uses absorption costing. It will "sell" its product to Castle Lager at $47 per barrel. Peter Bryant, Castle Lager's controller, obtains the following information about Jacksonville Brewery's capacity and budgeted fixed manufacturing costs for 2017: Home Insert Page Layout Formulas Data Review View Budgeted Fixed Manufacturing Overhead per Period $27,900,000 $27,900,000 $27,900,000 Days of Production Production per Period Hours of Denominator-Level Capacity Concept 4 Theoretical capacity 5 Practical capacity 6 Normal capacity utilization Master-budget capacity utilization 7 for each half year: (a) January-June 2017 (b) July-December 2017 Barrels per Hour 545 per Day 358 22 348 20 510 348 20 410 $13,950,000 $13,950,000 174 20 315 174 20 505

Castle Lager has just purchased the Jacksonville Brewery. The brewery is two years old and uses absorption costing. It will "sell" its product to Castle Lager at $47 per barrel. Peter Bryant, Castle Lager's controller, obtains the following information about Jacksonville Brewery's capacity and budgeted fixed manufacturing costs for 2017: Home Insert Page Layout Formulas Data Review View Budgeted Fixed Manufacturing Overhead per Period $27,900,000 $27,900,000 $27,900,000 Days of Production Production per Period Hours of Denominator-Level Capacity Concept 4 Theoretical capacity 5 Practical capacity 6 Normal capacity utilization Master-budget capacity utilization 7 for each half year: (a) January-June 2017 (b) July-December 2017 Barrels per Hour 545 per Day 358 22 348 20 510 348 20 410 $13,950,000 $13,950,000 174 20 315 174 20 505

Name: Compute the budgeted fixed manufacturing overhead rate per barrel for
Uploaded: 2024-03-20T06:33:06.000Z
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Description: Compute the budgeted fixed manufacturing overhead rate per barrel for each of the denominator-level capacity concepts. Explain why they are different. Castle Lager has justpurchased the Jacksonville Brewery. The brewery is two years old and uses abso

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Draw a graph showing budgeted and applied fixed overhead, and show an unfavorable (or positive) volume variance on the graph.
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List the variable overhead variances, and briefly describe each.
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based on the attached what is the answer?