Exercise 3-24 The controller for Tender Bird Poultry, Inc. estimates that the company's fixed overhead...

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Accounting

Exercise 3-24 The controller for Tender Bird Poultry, Inc. estimates that the company's fixed overhead is $100,000 Flared and Vartable Costs, per year. She also has determined that the variable overhead is approximately $.10 per chicken ruised and sold. Since the firm has a single product, overhead is applied on the basis of output units, chickens raised and sold. Overhead Rate; Agribusiness (LO 3-1, 3-4) Required: 1. Calculate the predetermined overhead rate under each of the following output predictions: 200,000 chickens, 300,000 chickens, and 400,000 chickens. 2. Does the predetermined overhead rate change in proportion to the change in predicted production? Why?
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The controller for Tender Bird Poulity, Inc. escimales that the company's fixed overtead is $100,000 pr year. She also has determined that the variable overhead is approximately $10 per chicken raised and sold. Sinec the firm has a single product, overteod is applied on the basis of oulput units, chickens raised and sold. 1. Calculate the precketemined wertead rate under each of the following oulput prodictions: 200,000 chickens, 30,000 chickens, and 400,000 chickens. 2. Does the predetermined overtead nate change in proportion to the change in prodicted production? Why

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