Data table Budgeted Fixed Manufacturing Overhead per Period per Period Days of Hours of Production Production Barrels per Hour per Day $ 27,800,000 360 $ 27,800,000 352 $ 27,800,000 352 222 535 20 495 20 405 Denominator-Level Capacity Concept Theoretical capacity Practical capacity Normal capacity utilization Master-budget capacity utilization for each half year: (a) January-June 2017 (b) July-December 2017 SA 13,900,000 176 13,900,000 176 770 220 310 500 2. In 2017, the Atlanta Brewery reported these production results: Beginning inventory in barrels, 1-1-2017 Production in barrels Ending inventory in barrels, 12-31-2017 Actual variable manufacturing costs 0 2,580,000 180,000 $ 77,529,000 Actual fixed manufacturing overhead costs $ 26,900,000 There are no variable cost variances. Fixed manufacturing overhead cost variances are written off to cost of goods sold in the period in which they occur. Compute the Atlanta Brewery's operating income when the denominator-level capacity is (a) theoretical capacity, (b) practical capacity, and (c) normal capacity utilization. Requirement 2. Compute the Atlanta Brewery's operating income when the denominator-level capacity is (a) theoretical capacity, (b) practical capacity, and (c) normal capacity utilization. Begin by completing the following table to help you compute the operating income for each denominator-level capacity concept. (Round the rates to the nearest cent.) Denominator-level capacity concept Theoretical capacity Per barrel Budgeted fixed MOH rate Budgeted variable mfg Budgeted total mfg Fixed MOH per barrel cost rate cost rate costs allocated Superior Lager has just purchased the Atlanta Brewery. The brewery is two years old and uses absorption costing. It will "sell" its product to Superior Lager at $43 per barrel. Peter Bryant, Superior Lager's controller, obtains the following information about Atlanta Brewery's capacity and budgeted fixed manufacturing costs for 2017: (Click the icon to view the information.) Read the requirements