Tender Bird Poultry, Inc. Product Costing
Not what you're looking for?
The controller for Tender Bird Poultry, Inc. estimates that the company's fixed overhead is $150,000 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 u nits, chickens, raised and sold.
1. Calculate the predetermined overhead rate under each of the following output predictions: 100,000 chickens, 200,000 chickens, and 300,000 chickens.
2. Does the predetermined overhead rate change in proportion to the change in predicted production?
Purchase this Solution
Solution Summary
This solution provides calculations for the predetermined overhead rate for each output level of chickens and explains why predetermined overhead rate doesn't change directly in proportion to the change in predicted production.
Solution Preview
1. Predetermined overhead rate = (Fixed overhead + variable overhead)/ number of units produced.
a) 100,000 chickens,
Fixed overhead=150000
Variable ...
Purchase this Solution
Free BrainMass Quizzes
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.