1. Single Plantwide Factory Overhead Rate

Nixon Machine Parts Inc.'s Fabrication Department incurred $93,600 of factory overhead cost in producing gears and sprockets. The two products consumed a total of 3,900 direct machine hours. Of that amount, sprockets consumed 1,800 direct machine hours.

Determine the total amount of factory overhead that should be allocated to sprockets using machine hours as the allocation base. If required, round your answer to the nearest dollar. $

2. Single Plantwide Factory Overhead Rate

Salty Sensations Snacks Company manufactures three types of snack foods: tortilla chips, potato chips, and pretzels. The company has budgeted the following costs for the upcoming period:

Factory depreciation		$21,201
Indirect labor		52,541
Factory electricity		5,992
Indirect materials		12,444
Selling expenses		29,497
Administrative expenses		16,592
	Total costs	$138,267

Factory overhead is allocated to the three products on the basis of processing hours. The products had the following production budget and processing hours per case:

		Budgeted Volume (Cases)				Processing Hours Per Case
Tortilla chips			6,300			0.15
Potato chips			2,100			0.12
Pretzels			5,100			0.10
	Total		13,500

If required, round all per-case answers to the nearest cent.

a. Determine the single plantwide factory overhead rate. $ per processing hour

b. Use the factory overhead rate in (a) to determine the amount of total and per-case factory overhead allocated to each of the three products under generally accepted accounting principles.

	Total Factory Overhead	Per-Case Factory Overhead
Tortilla chips	$	$
Potato chips
Pretzels
Total	$

5.Product Costs using Activity Rates

Nozama.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost of the sales order processing activity is $209,300, and 16,100 orders are estimated to be processed.

a. Determine the activity rate of the sales order processing activity. $ per sales order

b. Determine the amount of sales order processing cost that Nozama.com would receive if it had 9,200 sales orders. $