Question
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
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 company maintained 515 rabbit pens in 2011 and plans to have 520 pens in 2012
. A. If the number of rabbit pens is used as the cost driver, what is the company's 2012 predetermined overhead rate? Round your answer to the nearest cent. Use your rounded answer in subsequent calculations. $ per pen
B. What amount of overhead was applied in 2012 if there were actually 530 pens? Round your answer to the nearest dollar. $
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