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Christopher Djobo 11/18/24 7:36 AM Question Part 2 of 13 Completed: 5 of 10 My score: 5.03/10 pts (50.29%) Save Lucky Lager has just purchased the Austin Brewery. The brewery is 2 years old and uses absorption costing. It will "sell" its product to Lucky Lager at $47 per barrel. Peter Bryant, Lucky Lager's controller, obtains the following information about Austin Brewery's capacity and budgeted fixed manufacturing costs for 2020: BEE (Click the icon to view the information.) Read the requirements. Requirement 1. Compute the budgeted fixed manufacturing overhead rate per barrel for each of the denominator-level capacity concepts. Explain why they are different. Begin by determing the formula to calculate the budgeted fixed manufacturing overhead rate per barrel, then compute the rate for each of the denominator-level capacity concepts. (Abbreviations used: Budg. = budgeted, MOH = manufacturing overhead. Round the rates to the nearest cent.) Budgeted fixed Budg. fixed MOH per period ÷ Budg. denominator level (barrels) = MOH rate per barrel Theoretical capacity + = Data table A B Budgeted Fixed Manufacturing C D E 1 Denominator-Level Capacity Concept Overhead per Period per Period Days of Hours of Production Production Barrels per Hour per Day 2 Theoretical capacity 3 Practical capacity 4 Normal capacity utilization Master-budget capacity utilization for 5 each half year: EA $ SA $ $ 28,200,000 356 24 600 28,200,000 350 20 520 28,200,000 350 20 420 X 6 (a) January-June 2020 $ E9 14,100,000 175 7 (b) July-December 2020 $ 14,100,000 175 20 20 20 340 500 Check answer e help

Christopher Djobo 11/18/24 7:36 AM Question Part 2 of 13 Completed: 5 of 10 My score: 5.03/10 pts (50.29%) Save Lucky Lager has just purchased the Austin Brewery. The brewery is 2 years old and uses absorption costing. It will "sell" its product to Lucky Lager at $47 per barrel. Peter Bryant, Lucky Lager's controller, obtains the following information about Austin Brewery's capacity and budgeted fixed manufacturing costs for 2020: BEE (Click the icon to view the information.) Read the requirements. Requirement 1. Compute the budgeted fixed manufacturing overhead rate per barrel for each of the denominator-level capacity concepts. Explain why they are different. Begin by determing the formula to calculate the budgeted fixed manufacturing overhead rate per barrel, then compute the rate for each of the denominator-level capacity concepts. (Abbreviations used: Budg. = budgeted, MOH = manufacturing overhead. Round the rates to the nearest cent.) Budgeted fixed Budg. fixed MOH per period ÷ Budg. denominator level (barrels) = MOH rate per barrel Theoretical capacity + = Data table A B Budgeted Fixed Manufacturing C D E 1 Denominator-Level Capacity Concept Overhead per Period per Period Days of Hours of Production Production Barrels per Hour per Day 2 Theoretical capacity 3 Practical capacity 4 Normal capacity utilization Master-budget capacity utilization for 5 each half year: EA $ SA $ $ 28,200,000 356 24 600 28,200,000 350 20 520 28,200,000 350 20 420 X 6 (a) January-June 2020 $ E9 14,100,000 175 7 (b) July-December 2020 $ 14,100,000 175 20 20 20 340 500 Check answer e help

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 39P
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Christopher Djobo 11/18/24 7:36 AM Question Part 2 of 13 Completed: 5 of 10 My score: 5.03/10 pts (50.29%) Save Lucky Lager has just purchased the Austin Brewery. The brewery is 2 years old and uses absorption costing. It will "sell" its product to Lucky Lager at $47 per barrel. Peter Bryant, Lucky Lager's controller, obtains the following information about Austin Brewery's capacity and budgeted fixed manufacturing costs for 2020: BEE (Click the icon to view the information.) Read the requirements. Requirement 1. Compute the budgeted fixed manufacturing overhead rate per barrel for each of the denominator-level capacity concepts. Explain why they are different. Begin by determing the formula to calculate the budgeted fixed manufacturing overhead rate per barrel, then compute the rate for each of the denominator-level capacity concepts. (Abbreviations used: Budg. = budgeted, MOH = manufacturing overhead. Round the rates to the nearest cent.) Budgeted fixed Budg. fixed MOH per period ÷ Budg. denominator level (barrels) = MOH rate per barrel Theoretical capacity + = Data table A B Budgeted Fixed Manufacturing C D E 1 Denominator-Level Capacity Concept Overhead per Period per Period Days of Hours of Production Production Barrels per Hour per Day 2 Theoretical capacity 3 Practical capacity 4 Normal capacity utilization Master-budget capacity utilization for 5 each half year: EA $ SA $ $ 28,200,000 356 24 600 28,200,000 350 20 520 28,200,000 350 20 420 X 6 (a) January-June 2020 $ E9 14,100,000 175 7 (b) July-December 2020 $ 14,100,000 175 20 20 20 340 500 Check answer e help
Transcribed Image Text:Christopher Djobo 11/18/24 7:36 AM Question Part 2 of 13 Completed: 5 of 10 My score: 5.03/10 pts (50.29%) Save Lucky Lager has just purchased the Austin Brewery. The brewery is 2 years old and uses absorption costing. It will "sell" its product to Lucky Lager at $47 per barrel. Peter Bryant, Lucky Lager's controller, obtains the following information about Austin Brewery's capacity and budgeted fixed manufacturing costs for 2020: BEE (Click the icon to view the information.) Read the requirements. Requirement 1. Compute the budgeted fixed manufacturing overhead rate per barrel for each of the denominator-level capacity concepts. Explain why they are different. Begin by determing the formula to calculate the budgeted fixed manufacturing overhead rate per barrel, then compute the rate for each of the denominator-level capacity concepts. (Abbreviations used: Budg. = budgeted, MOH = manufacturing overhead. Round the rates to the nearest cent.) Budgeted fixed Budg. fixed MOH per period ÷ Budg. denominator level (barrels) = MOH rate per barrel Theoretical capacity + = Data table A B Budgeted Fixed Manufacturing C D E 1 Denominator-Level Capacity Concept Overhead per Period per Period Days of Hours of Production Production Barrels per Hour per Day 2 Theoretical capacity 3 Practical capacity 4 Normal capacity utilization Master-budget capacity utilization for 5 each half year: EA $ SA $ $ 28,200,000 356 24 600 28,200,000 350 20 520 28,200,000 350 20 420 X 6 (a) January-June 2020 $ E9 14,100,000 175 7 (b) July-December 2020 $ 14,100,000 175 20 20 20 340 500 Check answer e help
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