Chapter 9, Problem 9.31P

1.

To determine

The budgeted fixed manufacturing overhead rate per barrel for each of the denominator-level capacity concepts.

(2)(a)

To determine

J Company’s operating income when the denominator-level capacity is theoretical capacity.

(b)

To determine

J Company’s operating income for 2014 when the denominator-level capacity is practical capacity.

(c)

To determine

The operating income using the normal capacity denominator level for 2014.