Factory depreciation Indirect labor Factory electricity Indirect materials Selling expenses Administrative expenses Total costs 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 Processing Hours (Cases) Per Case Tortilla chips Potato chips Pretzels Total Tortilla chips Potato chips $24,012 59,508 6,786 14,094 33,408 18,792 $156,600 6,000 6,000 1,200 13,200 Pretzels If required, round all per-case answers to the nearest cent. a. Determine the single plantwide factory overhead rate. per processing hour Total 0.12 0.15 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 Per-Case Factory Overhead Factory Overhead 0.10
Factory depreciation Indirect labor Factory electricity Indirect materials Selling expenses Administrative expenses Total costs 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 Processing Hours (Cases) Per Case Tortilla chips Potato chips Pretzels Total Tortilla chips Potato chips $24,012 59,508 6,786 14,094 33,408 18,792 $156,600 6,000 6,000 1,200 13,200 Pretzels If required, round all per-case answers to the nearest cent. a. Determine the single plantwide factory overhead rate. per processing hour Total 0.12 0.15 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 Per-Case Factory Overhead Factory Overhead 0.10
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 3E: Scrumptious Snacks Inc. manufactures three types of snack foods: tortilla chips, potato chips, and...
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Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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![Factory depreciation
Indirect labor
Factory electricity
Indirect materials
Selling expenses
Administrative expenses
Total costs
Tortilla chips
Potato chips
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
Processing Hours
(Cases)
Per Case
Pretzels
Total
Tortilla chips
Potato chips
$24,012
59,508
6,000
6,000
1,200
13,200
Pretzels
6,786
14,094
33,408
18,792
$156,600
Total
If required, round all per-case answers to the nearest cent.
a. Determine the single plantwide factory overhead rate.
per processing hour
0.12
0.15
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
Per-Case
Factory Overhead
Factory Overhead
0.10](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1b2ce304-31e1-40b6-89de-6df276a0afd6%2Fe8447bf3-2840-4f46-968d-8356f4b72d62%2Fttyphzq_processed.png&w=3840&q=75)
Transcribed Image Text:Factory depreciation
Indirect labor
Factory electricity
Indirect materials
Selling expenses
Administrative expenses
Total costs
Tortilla chips
Potato chips
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
Processing Hours
(Cases)
Per Case
Pretzels
Total
Tortilla chips
Potato chips
$24,012
59,508
6,000
6,000
1,200
13,200
Pretzels
6,786
14,094
33,408
18,792
$156,600
Total
If required, round all per-case answers to the nearest cent.
a. Determine the single plantwide factory overhead rate.
per processing hour
0.12
0.15
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
Per-Case
Factory Overhead
Factory Overhead
0.10
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