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Pack's Snacks makes potato chips, corn chips, and cheese puffs using three different production lines within the same manufacturing plant. Currently, Pack uses a single
Pack's Snacks makes potato chips, corn chips, and cheese puffs using three different production lines within the same manufacturing plant. Currently, Pack uses a single plantwide overhead rate to allocate its $3,567,000 of annual manufacturing overhead. Of this amount, $1,785,000 is associated with the potato chip line, $1,032,000 with the corn chip line, and $750,000 with the cheese puff line. Pack's plant is currently running a total of 17,400 machine hours: 10,500 in the potato chip line, 3,150 in the corn chip line, and 3,750 in the cheese puff line. Pack considers machine hours to be the cost driver of MOH costs. 1. What is Pack's plantwide overhead rate? 2. Calculate the departmental overhead rates for Pack's three production lines. Round all answers to the nearest cent. 3. Which products are overcosted by the plantwide rate? Which products are undercosted by the plantwide rate? VULUI IULIU IVIMUIU IVI LuiCUILLIY LIL PIUMINIUu VVnvuu TULU, LIIVIT CUILUIULU LIU TULU. Plantwide overhead rate Requirement 2. Calculate the departmental overhead rates for Pack's three production lines. Begin by determining the formula for calculating a department's overhead rate, then calculate the overhead rates for each department. (Round your answers to the nearest cent.) Department overhead rate Potato Chips Corn Chips Cheese Puffs Requirement 3. Which products are overcosted by the plantwide rate? Which products are undercosted by the plantwide rate? For each product, select if it was overcosted or undercosted by using the plantwide rate. Product Line Overcosted or Undercosted Potato Chip Corn Chip Cheese Puffs >
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