Aunt Ethel Snacks makes potato chips, corn chips, and cheese puffs using three different production lines within the same manufacturing plant. Currently, Aunt Ethel uses a single plantwide overhead rate to allocate its $4,335,000 of annual manufacturing overhead. Of this amount, $2,332,000 is associated with the potato chip line, $1,374,000 is associated with the corn chip line, and $629,000 is associated with the cheese puff line. Aunt Ethel's plant is currently running a total of 17,000 machine hours: 10,600 in the potato chip line, 3,000 in the corn chip line, and 3,400 in the cheese puff line. Aunt Ethel considers machine hours to be the cost driver of manufacturing overhead costs. 1. What is Aunt Ethel's plantwide overhead rate? 2. Calculate the departmental overhead rates for Aunt Ethel's three production lines. Round all answers to the nearest cent. 3. Which products have been overcosted by the plantwide rato? Which products have been undercosted by the plantwide rato? 1. What is Aunt Ethel's plantwide overhead rate? Determine the formula for calculating the plantwide overhead rate, then calculate the rate. Plantwide overhead rate per machine hour 2. Calculate the departmental overhead rates for Aunt Ethel's three production lines. Round all answers to the nearest cent. Begin by determining the formula for calculating a departments overhead rate, then calculate the overhead rates for each department Department overhead rate Potato Chips per machine hour Corn Chips per machine hour Cheese Puffs per machine hour Aunt Ethel Snacks makes potato chips, corn chips, and cheese puffs using three different production lines within the same manufacturing plant. Currently. Aunt Ethel uses a single plantwide overhead rate to allocate its $4,335,000 of annual manufacturing overhead. Of this amount, $2,332,000 is associated with the potato chip line, S1,374,000 is associated with the corn chip line, and $629,000 is associated with the cheese puff line. Aunt Ethel's plant is currently running a total of 17,000 machine hours: 10,600 in the potato chip line, 3,000 in the corn chip line, and 3,400 in the cheese puff line. Aunt Ethel considers machine hours to be the cost driver of manufacturing overhead costs. 1. What is Aunt Ethel's plantwide overhead rate? 2. Calculate the departmental overhead rates for Aunt Ether's three production lines. Round all answers to the nearest cent. 3. Which products have been overcosted by the plantwide rate? Which products have been undercosted by the plantwide rate? Determine the formula for calculating the plantwide overhead rate, then calculate the rate. Plantwide overhead rate per machine hour 2. Calculate the departmental overhead rates for Aunt Ethel's three production lines. Round all answers to the nearest cent. Begin by determining the formula for calculating a departments overhead rate, then calculate the overhead rates for each department. Department overhead rate Potato Chips per machine hour Corn Chips per machine hour Cheese Puffs per machine hour 3. Which products have been overcosted by the plantwide rato? Which products have been undercosted by the plantwide rate? For each product, select if it was overcosted or undercosted by using the plantwide rato Product Line Undercosted Potato Chip Com Chip Choose Puffs Overcosted or Aunt Ethel Snacks makes potato chips, com chips, and cheese puffs using three different production lines within the same manufacturing plant. Currently, Aunt Ethol uses a single plantwide overhead rate to allocate its $4,335,000 of annual manufacturing overhead. Of this amount, $2,332,000 is associated with the potato chip line, $1,374,000 is associated with the corn chip line, and $629,000 is associated with the cheese puff line. Aunt Ethel's plant is currently running a total of 17,000 machine hours: 10,600 in the potato chip line, 3,000 in the corn chip line, and 3,400 in the cheese puff line. Aunt Ethel considers machine hours to be the cost driver of manufacturing overhead costs. 1. What is Aunt Ethel's plantwide overhead rate? 2. Calculate the departmental overhead rates for Aunt Ethel's three production lines. Round all answers to the nearest cent. 3. Which products have been overcosted by the plantwide rato? Which products have been undercosted by the plantwide rate? 2 Total assets 1. What is Aunt Ethel's plantwide overhead rate? Determine the formula for calculating the plantwide overhead rate, then calculate the rate. Plantwide overhead rate per machine hour Department hours rates for Aunt Ethel's three production lines. Round all answers to the nearest cent. B Total department overhead culating a departments overhead rate, then calculate the overhead rates for each department. Total machine hours Department overhead rate F Total manufacturing overhead per machine hour Total owners' equity per machine hour Total revenues per machine hour 3. Which products have been overcosted by the plantwide rate? Which products have been undercosted by the plantwide rato? For each product, select if it was overcosted or undercosted by using the plantwide rate. Product Line Overcosted or Undercosted Total liabilities Potato Chip
