Question
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
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:
1
Factory depreciation
$31,875.00
2
Indirect labor
79,688.00
3
Factory electricity
7,969.00
4
Indirect materials
35,788.00
5
Selling expenses
24,800.00
6
Administrative expenses
19,100.00
7
Total costs
$199,220.00
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 CaseTortilla chips4,1000.24Potato chips4,8000.20Pretzels2,2000.40Total11,100
Required:a.Determine the single plantwide factory overhead rate.*
. Determine the single plantwide factory overhead rate. If required, round your answer to the nearest cent.
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. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. If required, round your answer to the nearest cent.
1
Total Factory Overhead
Per Case Factory Overhead
2
3
4
5
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started