Problem Set: Module 3 eBook 1. EX.04.07.ALGO 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 2. TMM.04.06 Period: 3. EX.04.06 $18,409 45,623 4. EX 04 03.ALGO Factory depreciation Indirect labor Factory electricity Indirect materials 5,203 5. EX.04.05.ALGO 10,805 25,613 Selling expenses Administrative expenses 14,407 Total costs $120,060 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 3,900 0.10 Potato chips 4,200 0.15 Pretzels 6,000 0.12 Total 14,100 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 Patati ching $15,109 Tectory depreca.com Indirect labor 1. EX.04.07.ALGO 45,623 Factory electricity 5,203 2. TMM.04.06 3. EX 04.06 4. EX.04.03.ALGO Indirect materials 10,805 Selling expenses 25,613 Administrative expenses 14,407 Total costs $120,060 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 5. EX.04.05.ALGO Tortilla chips 3,900 0.10 Potato chips 4,200 0.15 Pretzels 6,000 0.12 Total 14,100 If required, round all per-case answers to the nearest cent. a. Determine the single plantwide factory overhead rate, S 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 Problem Set: Module 3 eBook Show Me How 1. EX.04.07.ALGO 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: 2. TMM.04.06 Pattern Department overhead 3. EX.04.06 $140,000 234,500 Cut and Sew Department overhead Total $374,500 4. EX.04.03. ALGO The direct labor estimated for each production department was as follows: 5. EX.04.05.ALGO Pattern Department 2,800 direct labor hours Cut and Sew Department 3,500 Total 6,300 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 0.07 0.09 0.11 Direct labor hours per unit 0.12 0.15 0.18 If required, round all per unit answers to the nearest cent. . a. Determine the two production department factory overhead rates. Pattern Department per dih Cut and Sew Department st 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 si per unit Large glove per unit Check My Work