Question: 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

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.)

Find the Overhead Rates(per chicken) for the following 3 volumes:

200,000

300,000

400,000

Does the predetermined overhead rate change in proportion to the change in predicted production? (yes/no)

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