Question: Rabbit Enterprises calculates predetermined overhead rates for each department. In the feeding department, total overhead costs were $19,240 in 2008, and they are expected to

Rabbit Enterprises calculates predetermined overhead rates for each department. In the feeding department, total overhead costs were $19,240 in 2008, and they are expected to be $21,700 in 2009. The company maintained 515 pens in 2008 and plans to have 520 pens in 2009.

Required
A. If the number of pens is used as the cost driver, what is the company’s 2009 predetermined overhead rate?
B. What amount of overhead was applied in 2009 if there were actually 530 pens?

Step by Step Solution

★★★★★

3.52 Rating (176 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

A 4173 per pen The predetermined overhead rate is calculated by divi... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

420-B-M-A-J-O-C (1493).docx

120 KBs Word File

Students Have Also Explored These Related Managerial Accounting Questions!

MAKE SURE ALL FORMULAS ARE CORRECTLY ENTERED MAKE SURE ALL FORMULAS ARE CORRECTLY ENTERED Jay Corporation has provided data from a two-year period to aid in planning. The Controller has asked you to...

If the conditions in the future are expected to be like those in the past, what is the expected portfolio return and standard deviation in a portfolio comprised of 25% XOM and 75% MSFT? 50% XOM and...

If Avogadro's number of pennies is divided equally among the 300 million men, women, and children in the United States, how many dollars would each receive? How does this compare with the gross...

Predetermined overhead rates for various cost drivers: manufacturer The following data relate to Denyer Ltd for the year just ended. Budgeted sales...

Rabbit Enterprises calculates predetermined overhead rates for each department. In the feeding department, total overhead costs were $19, 240 in 2011 and they are expected to be $21, 700 in 2012. The...

Rabbit Enterprises calculates predetermined overhead rates for each department. In the feeding department, total overhead costs were $19,240 in 2011 and they are expected to be $21,700 in 2012. The...

1) Which of the following statements does NOT apply to financial accounting? a) is subject to GAAP b) Is primarily meant to provide information to stockholders and creditors. c) Is subject to...

Please answer all of the questions. 1) Which of the following statements does NOT apply to financial accounting? a) is subject to GAAP b) Is primarily meant to provide information to stockholders and...

Please include calculations to how to do this problem I need help with this 5. (1 point) BN Rabbit Enterprises calculates predetermined overhead rates for each department. In the feeding department,...

21. Rabbits Galore Inc. calculates predetermined overhead rates for each department. In the feeding department, the company uses the number of rabbit pens as the cost driver, and had the following...

QUESTION 23 Rabbits Galore Inc. calculates predetermined overhead rates for each department. In the feeding department, the company uses the number of rabbit pens as the cost driver, and had the...

Write a class template that inputs the index of the array and displays the value in the specified index.

If e* is a solution of the homogeneous equation associated with (x-1)y"-xy' +y= (x-1), find the general solution of the given equation. Submission status

In capital budgeting, the profitability index ( PI ) decision model is best used to Multiple Choice Select projects when capital budgeting funds are limited . Evaluate mutually exclusive investments...

Let P be a convex polygon, a triangulation of P is an addition of diagonals connecting the vertices of P so that each interior face is a triangle. The weight of a triangulation is the sum of the...

A company that records and sells rewritable DVDs wants to compare the reliability of DVD fabricating machines produced by two different manufacturers. They randomly select 500 DVDs produced by each...

Because of the hot, humid weather conditions in Florida, the growth rates of beef cattle and the milk production of dairy cows typically decline during the summer. However, agricultural and...

An air wedge like that of Fig.?32.28 shows N bright bands when illuminated from above. Find an expression for the number of bands if the air is replaced by a liquid of refractive index n different...

Deep hole drilling is a family of drilling processes used when the ratio of hole depth to hole diameter exceeds 10. Successful deep hole drilling depends on the satisfactory discharge of the drill...

What am I? I am a back up plan such as extra time or a different way to do something if the first idea doesnt work. A. Deadlines B. Resources C. * Contingencies D. Timescales

Lunn Inc. makes and sells lawn mowers for which it currently makes the engines. It has an opportunity to purchase the engines from a reliable manufacturer. The annual costs of making the engines are...

Jenkins Bike Company (JBC) makes the frames used to build its bicycles. During 2011, JBC made 20,000 frames; the costs incurred follow. Unit-level materials costs (20,000 units $45) ........$...

Levene Boot Co. sells men's, women's, and children's boots. For each type of boot sold, it operates a separate department that has its own manager. The manager of the men's department has a sales...

Wii Brothers, a game manufacturer, has a new idea for an adventure game. It can market the game either as a traditional board game or as an interactive DVD , but not both. Consider the following cash...

For an interest rate of 2% per quarter, compounded continuously, the effective semiannual interest rate is closest to A. Less than 4.0% B. 4.02% C. 4.12% D. Over 4.25% A steel fabrication company...

Capital Budgeting Criteria: Mutually Exclusive Projects A firm with a WACC of 10% is considering the following mutually exclusive projects: O 1 N 3 4 5 $55 $230 + Project 1 -$400 $55 $55 Project 2 -...