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Scrumptious Snacks Inc. manufactures three types of snack foods; tortilla chips, potato chips, and pretrels, The company has budgeted the following costs for the upcoming
Scrumptious Snacks Inc. manufactures three types of snack foods; tortilla chips, potato chips, and pretrels, The company has budgeted the following costs for the upcoming period: Factory overhead is allocated to the three products an the basis of processing hours. The products had the follewing productisa budget and procetsing heurs per case: If required, round all per-case answers to the nearest cent. a. Determine the single plantwide factory overtiead rate. X per processing hour If required, round all per-case answers to the nearest cent. a. Determine the single plantwide factory overhead rate. X per processing hour 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 aceninting. principies. r Chas My wos e. First calculate: budgeted production volume for each product x Processing hours. Add together to obtain tocal processing hours: Recall that factory overhead does not include selling and administrative expensas. Dride the total of overhead costs by tatal procesaing hours ta abtain the ovirheod rate. b. Caiculate
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