Question
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$22,989
Indirect labor 56,974
Factory electricity 6,497
Indirect materials 13,494
Selling expenses 31,985
Administrative expenses 17,992
Total costs $149,931
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 2,400 0.10
Potato Chips 6,900 0.15
Pretzels 4,800 0.12
Total 14,100
If required round all per case answers to the nearest cent
Question A. Determine the single plantwide factory overhead rate
___________ per process hour
Question B.
Use the overhead rate in (a) to determine the amount of total and per-case overhead allocated to each of the three products under generally accepted accounting principles. Fill in the Blank.
Total Factory Overhead Per Case Factory Overhead
Tortilla chips $______ $_______
Potato chips _______ _______
Pretzels _______ ________
Total $_________
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