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 companys fixed overhead is $100,000 per year. She also has determined that the variable overhead is approximately $0.10 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 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 companys fixed overhead is $100,000 per year. She also has determined that the variable overhead is approximately $0.10 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

volumes: overhead rate

200,000 ? per chicken

300,000 ? per chicken

400,000 ? per chicken