Question
Single Plantwide Factory Overhead Rate Scrumptious Snacks Inc. manufactures three types of snack foods: tortilla chips, potato chips, and pretzels. The company has budgeted the
Single Plantwide Factory Overhead Rate
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 | $32,060 | ||
Indirect labor | 79,453 | ||
Factory electricity | 9,060 | ||
Indirect materials | 18,819 | ||
Selling expenses | 44,605 | ||
Administrative expenses | 25,091 | ||
Total costs | $209,088 |
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 | 6,900 | 0.12 | ||||||
Potato chips | 6,000 | 0.15 | ||||||
Pretzels | 4,500 | 0.10 | ||||||
Total | 17,400 |
If required, round all per-case answers to the nearest cent.
a. Determine the single plantwide factory overhead rate. $fill in the blank 1 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 accounting principles.
Total Factory Overhead | Per-Case Factory Overhead | |
Tortilla chips | $fill in the blank 2 | $fill in the blank 3 |
Potato chips | fill in the blank 4 | fill in the blank 5 |
Pretzels | fill in the blank 6 | fill in the blank 7 |
Total | $fill in the blank 8 |
Check My Work
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started