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 data:

Description	Costs/Pens
Total overhead costs last year	$19,240
Total rabbit pens maintained - last year	498 pens
Total expected overhead costs this year	21,630
Total rabbit pens maintained - expected this year	515 pens

Required: Compute the predetermined overhead rate for the current year?

		$38.62. per pen
		$43.43 per pen
		$37.36 per pen
		$42.00 per pen

22. 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 data:

Description	Costs/Pens
Total overhead costs last year	$19,240
Total rabbit pens maintained - last year	498 pens
Total expected overhead costs this year	21,630
Total rabbit pens maintained - expected this year	515 pens

Required: Compute the amount of overhead applied this year if there were actually 530 pens?

		$23,018
		$20,916
		$22,260
		$19,801