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Single Plantwide Factory Overhead Rate Salty Sensations Snacks Company manufactures three types of snack foods tortilla chips, potato chips, and pretrels. The company has budgeted
Single Plantwide Factory Overhead Rate Salty Sensations Snacks Company manufactures three types of snack foods tortilla chips, potato chips, and pretrels. The company has budgeted the follewing cests for the upcoming perlod Factory deprediation $27,975 Indirect labor 69,330 Factory electricity 7,906 Indirect materials 16,421 Selling expenses 38,922 Administrative expenses 21,894 Total costs $182,448 Factory overhead is allocated to the three products on the basis of processing hours. The preducts had the fellowing production budget and processing hours per case Budgeted Volume Processing Hours (Cases) Per Case Tortilia chips 3,000 0.10 Potato chips 6,600 0.12 etrels 7,200 0.15 Total 16,800 if required, round all per-case answers to the nearest cent a. Determine the single plantwide factery overhead rate. per processing hour b. Use the factory overhead rate in (a) to determine the amount of total and per-case factory averhead alocated to each of the three products under generally accepted accounting principles Tetal Per-Case Factory Overhead Factory Overhead Tortila chips Potato chips Pretrels Total Accounting mumerie e h W & Fist caoa Budgeed producton volume for each product x Pocessing hours Aad together to obsn total processing hours Recall that ectory overhead does not include selling and administratve expenses Divide the total of overhead costs by lotal processing hours to obtain the overhead rate b Calouate Overhead Rate in Req (a) x Processing hours for each product Overthead tor each Ad at overhesd amourts ts obtsn the tor Divide indvidual ovehead amourts by budgeted production volune tor each product to on ovetead per unt Leaming Otjective 2
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