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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 $24,376 Indirect labor 60,411 Factory electricity 6,889 Indirect materials 14,308 Selling expenses 33,915 Administrative expenses 19,077 Total costs $158,976 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 6,000 0.15 Potato chips 5,400 0.10 Pretzels 1,800 0.12 Total 13,200 If required, round all per-case answers to the nearest cent
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