Question
Factory depreciation $21,282 Indirect labor 52,743 Factory electricity 6,015 Indirect materials 12,492 Selling expenses 29,610 Administrative expenses 16,656 Total costs $138,798 Factory overhead is allocated
Factory depreciation $21,282 Indirect labor 52,743 Factory electricity 6,015 Indirect materials 12,492 Selling expenses 29,610 Administrative expenses 16,656 Total costs $138,798
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 3,300 0.10 Pretzels 6,900 0.12 Total 16,500
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 overhead rate in (a) to determine the amount of total and per-case 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: __________________________
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