Ebook Single Plantwide Factory Overhead Rate Scrumptious Snacks Inc Manufactures Three Types Of Snack Foods Tortilla C 1 (89.96 KiB) Viewed 48 times
eBook 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 $7,681 Indirect labor 19,036 Factory electricity 2,171 Indirect materials 4,508 Selling expenses 10,687 Administrative expenses 6,011 Total costs $50,094 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 2,400 0.10 Potato chips 1,800 0.12 Pretzels 1,800 0.15 Total 6,000 If required, round all per-case answers to the nearest cent. a. Determine the single plantwide factory overhead rate. 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 Check My Work Previous Next
eBook Indirect materials 4,508 Selling expenses 10,687 Administrative expenses 6,011 $50,094 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 2,400 0.10 Potato chips 1,800 0.12 Pretzels 1,800 0.15 Total 6,000 If required, round all per-case answers to the nearest cent. a. Determine the single plantwide factory overhead rate. 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 Factory Overhead Per-Case Factory Overhead Tortilla chips Potato chips Pretzels Total Check My Work Previous Next
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