[aquiroga]

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 $.15 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.

1.	Calculate the predetermined overhead rate under each of the following output predictions: 200,000 chickens, 300,000 chickens, and 400,000 chickens. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)

200,000 chickens	$
300,000 chickens	$
400,000 chickens	$

[smoothy]

Since we don't do your homework assignments for you... show us your answers and tell us how you got them.

[aquiroga]

Well I tried to do the POHR formula: Budgeted MOH cost/Budgeted amount of cost driver

But I'm doing something wrong..

a. 100,000/200,000 x.15= 3.33
b. 100,000/300,000 x .15= 2.22
c. 100,000/400,000 x .15= 1.67