redz Inc is a manufacturer of the very popular G36 motorcycl

redz, Inc. is a manufacturer of the very popular G36 motorcycles. The management at Tredz has recently adopted absorption costing and is debating which $3,024,000. Tredz, Inc, uses subassembly operators that provide component parts. The following are the denominator-level concept to use. The G36 motorcycles sell for an average price of $8,900. Budgeted fixed manufacturing overhead costs for 2017 are estimated at considering (Click the icon to view the options.) Read the requirements Requirement 1. Calculate the budgeted fixed manufacturing overhead cost rates under each concept (Round your answers to two decimal places) Budgeted fixed More Info Denominator levelmanufacturing capacity concept overhead cost rate Theoretical a. Theoretical capacity-based on two shifts, completion of three motorcycles per shift, and a 360-day year--2 x3x360 2,160 b. Practical capacity-theoretical capacity adjusted for unavoldable interruptions, breakdowns, and so forth 2 x 2 x 320·1.200 c. Normal capacity utilization-estimated at 560 units d. Master-budget capacity utilization- the strengthening stock market and the Enter any number in the edit fields and then click Check Answer growing popularity of motorcycles have prompted the marketing department to issue an estimate for 2017 of 960 units remaining

Solution

Denominator Level Capacity Concept Budgeted Fixed Manufacturing Overhead per Period Budgeted Capacity Level Budgeted Fixed Manufacturing Overhead Cost Rate Theoretical 3024000 2160 1400 Practical 3024000 1280 2362.50 Normal 3024000 560 5400 Master-budget 3024000 960 3150