Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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:

Budget Volume(Cases) Processing hours per case

Tortilla chips 4100 0.24

Potato Chips 4800 0.20

Pretzels 2200 0.40

Total 11,100

Determine the single plant wide factory overhead rate. If required, round your answer to the nearest cent.

_________________?????per processing hour

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.

Amount Description Total factory overhead per case overhead

  1. ????? ???? ?????
  2. ???? ???? ??????
  3. ???? ???? ?????
  4. ??? ??? ????

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Payroll Accounting 2020

Authors: Bernard J. Bieg, Judith A. Toland

30th edition

357117174, 978-0357117170

More Books

Students also viewed these Accounting questions