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Snappy Snack Food Company manufactures three types of snack food: tortilla chips, potato chips ,and pretzels. the company has budgeted the following cots for the
Snappy Snack Food Company manufactures three types of snack food: tortilla chips, potato chips ,and pretzels. the company has budgeted the following cots for the upcoming period: Factory depreciation $115,500 Indirect Labor 336,600 Factory electricity 43,400 Indirect materials 72,900 Selling expenses 171,000 Administrative expenses 92,800 Total costs $832,200 Factory overhead is allocated to the three products on the basis of processing hours. The product had the following production budget and processing hours per case: Budgeted Production Processing Hour Volume Cases) per Case Tortilla chips 16,000 0.14 Potato chips 34,000 0.18 Pretzels 12,000 0.12 Total 62,000 (a) Determine the single plantwide factory overhead rate (b) Use the factory overhead rate in (a) to determine the amount of total and per case factory overhead allocated too each of the three products under generally accepted accounting principles
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