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Need help explaining this. Single Plantwide Factory Overhead Rate Salty Sensations Snacks Company manufactures three types of snack foods: tortilla chips, potato chips, and pretzels.
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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: $26,005 Factory depreciation Indirect labor 64,446 Factory electricity 7,349 Indirect materials 15,264 36,180 Selling expenses Administrative expenses 20,352 Total costs $169,596 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 5,700 0.10 Pretzels 4,200 0.12 Total 16,200 If red, und per-case answers 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 TotalStep by Step Solution
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