Question: i need requirement 1,2 and 3. please answer all because its the samw question different parts Wheelie, Inc, is a manulacturer of the very popular



Wheelie, Inc, is a manulacturer of the very popular G36 motorcycles. The management at Wheelie has recently adopted absorpsion costing and is debating which denominator-leve concept to use. The G36 motorcydes set for an average price of 58,100 . Budgeted foxed manufacturing overhead costs for 2020 are estimated at 53,168 , 000 . Wheelie, inc, uses subassembly operators that provide component parts The following are the denominator level options that management has been considering: (i) (Clck the loon to view the options) Read the Requirement 1. Calculate the budgeted fixed manufachuring overhead cost rates under each concept (Round your answers to fwo decimal places ) Requirement 2. What are the benefits to Wheele, Inc, of using oither theoretical capacity or practical capacity? The variances that atise from use of the theoretical of practical level concepts will signal that there is between the supply of capacity and the demand for capacity This intomation is to managens As a genetal rule, however, it is important on the production-volume variance as a measure of the economic costs of urwised capacity Requirement 3. Under a cost-based pricing system, what are the negative aspects of a master-budget denominator lovel? What are the positive arspects? What are the negative aspects of a master-budget denominator level? demand is high. This hiss been referred to as the demand spiral What are the nositive aspectr? The positive aspects of the mastar-bucitet denominator level are that it is basod on for the product and indicates the price at which would be recowered to enable the company to make a profit Requirements 1. Calculate the budgeted fixed manufacturing overhead cost rates under the four denominator-level concepts. 2. What are the benefits to Wheelie, Inc., of using either theoretical capacity or practical capacity? 3. Under a cost-based pricing system, what are the negative aspects of a master-budget denominator level? What are the positive aspects? a. Theoretical capacity-based on two shifts, conspletion of four motorcycles per shift, and a 360 -day year 24360=2,880. b. Practical capacity - theoretical capacity adjusted for unavoidable c. Normal capacity utilization-estimated at 1,200 units. d. Master-budget capacity utilization-the strengthening stock market and the growing popularity of motorcycles have prompted the marketing department to issue an estimate for 2020 of 1,500 units
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