My Courses eBook Calculator Print Item Single Plantwide Factory Overhead Rate Scrumptious Snacks Inc. 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 $35,328 Indirect labor 87.552 Factory electricity 9,984 Indirect materials 20,736 Selling expenses 49,152 Administrative expenses 27,648 Total costs $230,400 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 Processing Hours (Cases) Per Case Tortilla chips 6,900 0.10 Potato chips 6.000 0.12 Pretzels 6,600 0.15 Total 19,500 If required, round all per-case answers to the nearest cent. 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 Processing Hours (Cases) Per Case Tortilla chips 6,900 0.10 Potato chips 6,000 0.12 Pretzels 6,600 0.15 Total 19,500 If required, round all per-case answers to the nearest cent. a. Determine the single plantwide factory overhead rate. 61 X 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 Per-Case Factory Overhead Factory Overhead Tortilla chips Potato chips Pretzels Total 200K Show Me How Calculator Print Item Multiple Production Department Factory Overhead Rate Method Handy Leather, Inc., produces three sizes of sports gloves: small, medium, and large. A glove pattern is first stenciled onto leather in the Pattern Department. The stenciled patterns are then sent to the Cut and Sew Department, where the glove is cut and sewed together. Handy Leather uses the multiple production department factory overhead rate method of allocating factory overhead costs. Its factory overhead costs were budgeted as follows: Pattern Department overhead $96,000 Cut and Sew Department overhead 160,000 Total $256.000 The direct labor estimated for each production department was as follows: Pattern Department 1,600 direct labor hours Cut and Sew Department 2,000 Total 3,600 direct labor hours Direct labor hours are used to allocate the production department overhead to the products. The direct labor hours per unit for each product for each production department were obtained from the engineering records as follows: Production Departments Small Glove Medium Glove Large Glove Pattern Department 0.05 0.06 0.07 Cut and Sew Department 0.08 0.10 0.12 Direct labor hours per unit 0.13 0.16 0.19 If required, round all per unit answers to the nearest cent. My Courses BUUR Show Me How Calculator Print Item The rear sunce Toren production partnere was as TOUWS Pattern Department 1,600 direct labor hours Cut and Sew Department 2,000 Total 3,600 direct labor hours Direct labor hours are used to allocate the production department overhead to the products. The direct labor hours per unit for each product for each production department were obtained from the engineering records as follows: Production Departments Small Glove Medium Glove Large Glove Pattern Department 0.05 0.06 0.07 Cut and Sew Department 0.08 0.10 0.12 Direct labor hours per unit 0.13 0.16 0.19 If required, round all per unit answers to the nearest cent. a. Determine the two production department factory overhead rates Pattern Department per dilih Cut and Sew Department per dih b. Use the two production department factory overhead rates to determine the factory overhead per unit for each product. Small glove per unit Medium glove per unit Large glove per unit
