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The controller for Tender Bird Poultry, Inc. estimates that the company's fixed overhead is $100,000...

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Accounting

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The controller for Tender Bird Poultry, Inc. estimates that the company's fixed overhead is $100,000 per year. She also has determined that the variable overhead is approximately $0.15 per chicken raised and sold. Since the firm has a single product, overhead is applied on the basis of output units, chickens raised and sold. Required: 1. Calculate the predetermined overhead rate under each of the following output predictions: (Round your answers to 2 decimal places.) Volumes 200,000 300,000 400,000 Overhead Rate per chicken per chicken per chicken 2. Does the predetermined overhead rate change in proportion to the change in predicted production? O Yes O No

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