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Required: 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 to each of the three products under generally accepted accounting principles. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries."

Required: 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 to each of the three products under generally accepted accounting principles. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries."

Managerial Accounting
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 2E: Bach Instruments Inc. makes three musical instruments: flutes, clarinets, and oboes. The budgeted...
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Salty Sensations Snacks Company manufactures three types of snack foods: tortilla chips, potato chips, and pretzels. The company has budgeted the following costs for the upcoming period:
 
(QUESTION IN PICTURES)
1 Factory depreciation $31,875.00 2 Indirect labor 79,688.00 3 Factory electricity 7,969.00 4 Indirect materials 35,788.00 5 Selling expenses 24,800.00 6 Administrative expenses 19,100.00 7 Total costs $199,220.00 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 4,100 0.24 Potato chips 4,800 0.20 Pretzels 2,200 0.40 Total 11,100 Required: 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 to each of the three products under generally accepted accounting principles. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.*
Transcribed Image Text:1 Factory depreciation $31,875.00 2 Indirect labor 79,688.00 3 Factory electricity 7,969.00 4 Indirect materials 35,788.00 5 Selling expenses 24,800.00 6 Administrative expenses 19,100.00 7 Total costs $199,220.00 Factory overhead is allocated to the three products on the basis of processing hours. The products had the following production budget and processing hours per case: Budgeted Volume (Cases) Processing Hours per Case Tortilla chips 4,100 0.24 Potato chips 4,800 0.20 Pretzels 2,200 0.40 Total 11,100 Required: a. Determine the single plantwide factory overhead rate.* b. Use the factory overhead rate in (a) to determine the amount of total and per-case factory overhead allocated to each of the three products under generally accepted accounting principles. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.*
a. Determine the single plantwide factory overhead rate. If required, round your answer to the nearest cent. 2$ per processing hour b. Use the factory overhead rate in (a) to determine the amount of total and per-case factory overhead allocated to each of the three products under generally accepted accounting principles. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. If required, round your answer to the nearest cent. Total Factory Per Case Factory 1 Overhead Overhead 2 3 4 5
Transcribed Image Text:a. Determine the single plantwide factory overhead rate. If required, round your answer to the nearest cent. 2$ per processing hour b. Use the factory overhead rate in (a) to determine the amount of total and per-case factory overhead allocated to each of the three products under generally accepted accounting principles. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. If required, round your answer to the nearest cent. Total Factory Per Case Factory 1 Overhead Overhead 2 3 4 5
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