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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:
Line Item Description Amount
Factory depreciation $
Indirect labor
Factory electricity
Indirect materials
Selling expenses
Administrative expenses
Total costs $
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:
Types of Snacks Budgeted Volume
Cases Processing Hours
per Case
Tortilla chips
Potato chips
Pretzels
Total
If required, round all percase answers to the nearest cent.
a Determine the single plantwide factory overhead rate.
fill in the blank of $
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.
Types of Snacks Total
Factory Overhead Per Unit
Factory Overhead Case
Tortilla chips fill in the blank of $
fill in the blank of $
Potato chips fill in the blank of
fill in the blank of
Pretzels fill in the blank of
fill in the blank of
Total fill in the blank of $
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