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: Factory depreciation $33,517 Indirect labor 83,065 Factory electricity 9,472 Indirect materials 19,674 Selling expenses 46,633 Administrative expenses 26,231 Total costs $218,592 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 5,100 0.15 Potato chips 6,600 0.12 Pretzels 7,200 0.10 Total 18,900 If required, round all per-case answers to the nearest cent. a. Determine the single plantwide factory overhead rate. 96 X 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. Total Per-Case Factory Overhead Factory Overhead Tortilla chips 73,440 x 14.40 X Potato chips 76,032 x 11.52 X Pretzels 69,120 X 9.6 X Total 218,592 X

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: Factory depreciation $33,517 Indirect labor 83,065 Factory electricity 9,472 Indirect materials 19,674 Selling expenses 46,633 Administrative expenses 26,231 Total costs $218,592 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 5,100 0.15 Potato chips 6,600 0.12 Pretzels 7,200 0.10 Total 18,900 If required, round all per-case answers to the nearest cent. a. Determine the single plantwide factory overhead rate. 96 X 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. Total Per-Case Factory Overhead Factory Overhead Tortilla chips 73,440 x 14.40 X Potato chips 76,032 x 11.52 X Pretzels 69,120 X 9.6 X Total 218,592 X

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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