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:
Line Item Description | Amount |
---|---|
Factory depreciation | $30,062 |
Indirect labor | 74,501 |
Factory electricity | 8,496 |
Indirect materials | 17,645 |
Selling expenses | 41,825 |
Administrative expenses | 23,527 |
Total costs | $196,056 |
Factory overhead is allocated to the three products on the basis of processing hours. The products had the following production budget and processing hours per case:
Types of Snacks | Budgeted Volume (Cases) | Processing Hours per Case |
---|---|---|
Tortilla chips | 6,000 | 0.15 |
Potato chips | 5,700 | 0.10 |
Pretzels | 7,200 | 0.12 |
Total | 18,900 |
If required, round all per-case answers to the nearest cent.
a. Determine the single plantwide factory overhead rate. fill in the blank 1 of 1$ 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.
Types of Snacks | Total Factory Overhead | Per Unit Factory Overhead Case |
---|---|---|
Tortilla chips | fill in the blank 1 of 7$ | fill in the blank 2 of 7$ |
Potato chips | fill in the blank 3 of 7 | fill in the blank 4 of 7 |
Pretzels | fill in the blank 5 of 7 | fill in the blank 6 of 7 |
Total | fill in the blank 7 of 7$ |
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