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Scrumptious Snacks Inc. manufactures three types of snack foods: tortilla chips, potato chips, and pretzels. The company has budgeted the following costs for the upcoming
Scrumptious Snacks Inc. manufactures three types of snack foods: tortilla chips, potato chips, and pretzels. The company has budgeted the following costs for the upcoming period: Factory depreciation $18,337 Indirect labor 45,445 Factory electricity 5,182 Indirect materials 10,764 Selling expenses 25,513 Administrative expenses 14,351 Total costs $119,592 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 Processing Hours (Cases) Per Case Tortilla chips 6,600 0.10 Potato chips 2,400 0.15 Pretzels 6,600 0.12 Total 15,600 If required, round all per-case answers to the nearest cent. a. Determine the single plantwide factory overhead rate. $[:] per processing hour b. Use the overhead rate in (a) to determine the amount of total and percase overhead allocated to each of the three products under generally accepted accounting principles. Total Per-Case Factory Overhead Factory Overhead Tortilla chips $:] $:] Potato chips :l C] Total 519:]
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