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Savory Snack Food Company manufactures three types of snack foods: tortilla chips, potato chips, and pretzels. The company has budgeted the following costs for the
Savory Snack Food Company manufactures three types of snack foods: tortilla chips, potato chips, and pretzels. The company has budgeted the following costs for the upcoming period:
21,120 Factory depreciation Indirect labor 52,800 Factory electricity 5,280 Indirect materials 18,800 Selling expenses 22,000 Administrative expenses 12,000 Total costs $132,000 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 Processing Hours Volume (Cases) per Case Tortilla chips 3,000 0.16 Potato chips 5,250 0.12 Pretzels 0.20 450 Total 9,700 If required, round all per unit answers to the nearest cent. a. Determine the single plantwide 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. Total Per Case Factory overhead Factory overhead Tortilla chips Potato chips Pretzels TotalStep by Step Solution
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