Question

Rabbit Enterprises calculates predetermined overhead rates for each department. In the feeding department, total overhead costs were $19,240 in 2008, and they are expected to be $21,700 in 2009. The company maintained 515 pens in 2008 and plans to have 520 pens in 2009.

Required
A. If the number of pens is used as the cost driver, what is the company’s 2009 predetermined overhead rate?
B. What amount of overhead was applied in 2009 if there were actually 530 pens?



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  • CreatedMarch 11, 2015
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