The controller for Tender Bird Poultry, Inc. estimates that the companys fixed overhead is $100,000 per year. She also has determined that the variable overhead is approximately $0.15 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: (Round your answers to 2 decimal places.)

200,000

300,000

400,000

2.	Does the predetermined overhead rate change in proportion to the change in predicted production?

Cherry Hill Glass Company employs a normal costing system. The following information pertains to the year just ended.

Total manufacturing costs were $1,440,000.

Cost of goods manufactured was $1,412,000.

Applied manufacturing overhead was 20 percent of total manufacturing costs.

Manufacturing overhead was applied to production at a rate of 80 percent of direct-labor cost.

Work-in-process inventory on January 1 was 75 percent of work-in-process inventory on December 31.

A.

Compute Cherry Hills total direct-labor cost for the year.

B.

Calculate the total cost of direct-material used during the year.

C.	Compute the value of the companys work-in-process inventory on December 31.