Exercise 3-24 Fixed and Variable Costs; Overhead Rate; Agribusiness (LO 3-1, 3-4)

Required information Exercise 3-24 Fixed and Variable Costs; Overhead Rate; Agribusiness (LO 3-1, 3-4) [The following information applies to the questions displayed below.] 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 $0.20 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. Exercise 3-24 Part 1 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 Exercise 3-24 Part 2 2. Does the predetermined overhead rate change in proportion to the change in predicted production? Yes NO