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 | $19,949 | ||
Indirect labor | 49,440 | ||
Factory electricity | 5,638 | ||
Indirect materials | 11,709 | ||
Selling expenses | 27,756 | ||
Administrative expenses | 15,612 | ||
Total costs | $130,104 |
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 | 4,200 | 0.15 | ||||||
Potato chips | 3,900 | 0.12 | ||||||
Pretzels | 5,700 | 0.10 | ||||||
Total | 13,800 |
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 |
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