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S 4 - 3 Compute departmental overhead rates ( Learning Objective 1 ) Snyder Snacks makes potato chips, corn chips, and cheese puffs using three
S Compute departmental overhead rates Learning Objective
Snyder Snacks makes potato chips, corn chips, and cheese puffs using three different production lines within the same manufacturing plant. Currently, Snyder uses a single plantwide overhead rate to allocate its $ of annual manufacturing overhead. Of this amount, $ is associated with the potato chip line, $ is associated with the corn chip line, and $ is associated with the cheese puff line. Snyder's plant is currently running a total of machine hours: in the potato chip line, in the corn chip line, and in the cheese puff line. Snyder considers machine hours to be the cost driver of manufacturing overhead costs.
What is Snyder's plantwide overhead rate?
Calculate the departmental overhead rates for Snyder's three production lines. Round all answers to the nearest cent.
Which products have been overcosted by the plantwide rate? Which products have been undercosted by the plantwide rate?
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