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: 1 Factory depreciation $29,168.00 2 Indirect labor 72,920.00 3 Factory electricity 7,292.00 4 Indirect materials 26,220.00 5 Selling expenses 27,000.00 6 Administrative expenses 19,700.00 7 Total costs $182,300.00 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 3,900 0.18 Potato chips 5,100 0.12 Pretzels 2,200 0.43 Total 11,200 a. Determine the single plantwide factory overhead rate. If required, round your answer to the nearest cent. 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. Question not attempted. 1 Total Factory Overhead Per Case Factory Overhead 2 3 4 5

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 4CMA: Krouse Company produces two products, forged putter heads and laminated putter heads, which are sold...

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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:

1	Factory depreciation	$29,168.00
2	Indirect labor	72,920.00
3	Factory electricity	7,292.00
4	Indirect materials	26,220.00
5	Selling expenses	27,000.00
6	Administrative expenses	19,700.00
7	Total costs	$182,300.00

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	3,900	0.18
Potato chips	5,100	0.12
Pretzels	2,200	0.43
Total	11,200

a. Determine the single plantwide factory overhead rate. If required, round your answer to the nearest cent.

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.

Question not attempted.

1	Total Factory Overhead	Per Case Factory Overhead
2
3
4
5

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