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 $30,986.00
2 Indirect labor 77,464.00
3 Factory electricity 7,746.00
4 Indirect materials 33,864.00
5 Selling expenses 25,300.00
6 Administrative expenses 18,300.00
7 Total costs $193,660.00
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 Case
Tortilla chips 4,0000.23
Potato chips 4,5000.12
Pretzels2,5000.40
Total11,000
Required:
a.Determine the single plant wide factory overhead rate.
$ _____ 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 answers to the nearest cent.
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