Exercise 3-24 The controller for Tender Bird Poultry, Inc. estimates that the company's fixed overhead is $100,000 Flared and Vartable Costs, per year. She also has determined that the variable overhead is approximately $.10 per chicken ruised and sold. Since the firm has a single product, overhead is applied on the basis of output units, chickens raised and sold. Overhead Rate; Agribusiness (LO 3-1, 3-4) Required: 1. Calculate the predetermined overhead rate under each of the following output predictions: 200,000 chickens, 300,000 chickens, and 400,000 chickens. 2. Does the predetermined overhead rate change in proportion to the change in predicted production? Why?

The controller for Tender Bird Poulity, Inc. escimales that the company's fixed overtead is $100,000 pr year. She also has determined that the variable overhead is approximately $10 per chicken raised and sold. Sinec the firm has a single product, overteod is applied on the basis of oulput units, chickens raised and sold. 1. Calculate the precketemined wertead rate under each of the following oulput prodictions: 200,000 chickens, 30,000 chickens, and 400,000 chickens. 2. Does the predetermined overtead nate change in proportion to the change in prodicted production? Why