Question 1)

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Question 2)

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 $33,517 Indirect labor 83,065 9,472 Factory electricity Indirect materials Selling expenses 19,674 46,633 Administrative expenses 26,231 Total costs $218,592 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 5,100 0.15 Potato chips 6,600 0.12 Pretzels 7,200 0.10 Total 18,900 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 Per-Case Factory Overhead Factory Overhead Tortilla chips Potato chips Pretzels Total 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: $88,200 Pattern Department overhead Cut and Sew Department overhead 149,500 Total $237,700 The direct labor estimated for each production department was as follows: Pattern Department 1,800 direct labor hours Cut and Sew Department 2,300 . Total 4,100 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: Large Glove 0.07 Production Departments Small Glove Medium Glove Pattern Department 0.05 0.06 Cut and Sew Department 0.08 0.10 Direct labor hours per unit 0.13 0.16 If required, round all per unit answers to the nearest cent. 0.12 0.19 a. Determine the two production department factory overhead rates. Pattern Department $ per dih Cut and Sew Department per dir b. Use the two production department factory overhead rates to determine the factory overhead per unit for each product. Small glove per unit Medium glave per unit Large glave per unit