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 $12,519 Indirect labor 31,026 Factory electricity 3,538 Indirect materials 7,349 Selling expenses 17,418 Administrative expenses 9,798 Total costs $81,648 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
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
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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- Multiple production department factory overhead rates The total factory overhead for Bardot Marine Company is budgeted for the year at 600,000 divided into two departments: Fabrication, 420,000, and Assembly, 180,000. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboats require 8 direct labor hours in Fabrication and 4 direct labor hours in Assembly. The bass boats require 4 direct labor hours in Fabrication and 8 direct labor hours in Assembly. Each product is budgeted for 250 units of production for the year. Determine (A) the total number of budgeted direct labor hours for the year in each department, (B) the departmental factory overhead rates for both departments, and (C) the factory overhead allocated per unit for each product using the department factory overhead allocation rates.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 $20,523 Indirect labor 50,862 5,800 12,047 28,554 16,062 $133,848 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 (Cases) Tortilla chips Potato chips Pretzels Tortilla chips Potato chips Total If required, round all per-case answers to the nearest cent. a. Determine the single plantwide factory overhead rate. $ per processing hour Pretzels 3,900 6,600 5,700 16,200 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…single Plantwide Factory Overhead Rate Salty Sensations Snacks Company manufactures three types of snack foods: tortita chips, potato chips, and pretzels. The company has budgeted the following costs for the upcoming period: Factory depreciation Indirect labor Factory electricity tndirect materials selling expenses Administrative expenses Total costs $31,360 78,400 7,840 35,400 25,000 18,000 $196,000 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: If required, round all per unit ansyers to the nearest cent. a. Determine the single plantwide factory overhead rate. x 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. Total Per Case
- 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 Indirect labor $20,770 51,474 Factory electricity Indirect materials Selling expenses Administrative expenses Total costs 5,870 12,192 28,898 16,255 $135,459 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 0.12 Potato chips 3,300 0.15 Pretzels 4,500 0.10 Total 12,900 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…Single Plantwide Factory Overhead Rate 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 periad: Factory depreciation $20,446 Indirect labor 50,671 Factory electricity 5,778 Indirect materials 12,001 Selling expenses 28,447 Administrative expenses 16,001 Total costs $133,344 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 1,200 0.10 Potato chips 6,300 0.15 Pretzels 2,700 0.12 Total 10,200 If required, round all per-case answers to the nearest cent. a. Determine the single plantwide factory overhead rate. 10.41 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…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 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 (Cases) $9,442 23,400 2,668 5,542 13,137 7,389 $61,578 Tortilla chips Potato chips Pretzels 3,900 2,100 1,500 7,500 If required, round all per-case answers to the nearest cent. Total Processing Hours Per Case 0.12 0.15 0.10 a. Determine the single plantwide factory overhead rate. per processing hour
- 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 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: Tortilla chips Potato chips Pretzels Total 3,300 2,100 1,800 7,200 If required, round all per-case answers to the nearest cent. Budgeted Volume (Cases) Tortilla chips Potato chips Pretzels $11,066 27,425 3,127 6,496 15,396 8,661 $72,171 a. Determine the single plantwide factory overhead rate. $ Total 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…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 $ 33,120 Indirect labor 82,800 Factory electricity 8,280 Indirect materials 31,800 Selling expenses 22,000 Administrative expenses 29,000 Total costs $207,000 Factory overhead is allocated to the three products on the basis of processing hours. The products had the following production budget and processing hours per case: BudgetedVolume (Cases) Processing HoursPer Case Tortilla chips 3,000 0.25 Potato chips 6,000 0.10 Pretzels 3,500 0.30 Total 12,500 If required, round all per unit answers to the nearest cent. a. Determine the single plantwide factory overhead rate.$fill in the blank 1 per processing hour b. Use the overhead rate in (a) to determine the…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
- Single plantwide factory overhead rate Bach Instruments Inc. makes three musical instruments: flutes, clarinets, and oboes. The budgeted factory overhead cost is $95,940. Overhead is allocated to the three products on the basis of direct labor hours. The products have the following budgeted production volume and direct labor hours per unit: Budgeted Production Direct Labor Hours Per Unit 0.5 1.6 1.1 Volume 2,700 units 500 Flutes Clarinets Oboes If required, round all per unit answers to the 1,400 nearest cent. Flutes Clarinets Oboes Total a. Determine the single plantwide overhead rate. per direct labor hour $ b. Use the overhead rate in (a) to determine the amount of total and per-unit overhead allocated to each of the three products. Total Factory Overhead Cost Per Unit Factory Overhead CostSingle plantwide factory overhead rate Bach Instruments Inc. makes three musical instruments: flutes, clarinets, and oboes. The budgeted factory overhead cost is $105,000. Overhead is allocated to the three products on the basis of direct labor hours. The products have the following budgeted production volume and direct labor hours per unit: Budgeted Production Volume Direct Labor Hours Per Unit Flutes 2,300 units 0.6 Clarinets 700 1.6 Oboes 1,000 1.0 If required, round all per unit answers to the nearest cent. a. Determine the single plantwide overhead rate.$fill in the blank 1 per direct labor hour b. Use the overhead rate in (a) to determine the amount of total and per-unit overhead allocated to each of the three products. TotalFactory Overhead Cost Per UnitFactory Overhead Cost Flutes $fill in the blank 2 $fill in the blank 3 Clarinets fill in the blank 4 fill in the blank 5 Oboes fill in the blank 6 fill in the blank 7 Total…Flutes Single plantwide factory overhead rate Platzer Instruments Inc. makes three musical instruments: flutes, clarinets, and oboes. The budgeted factory overhead cost is $1,874,400. Overhead is allocated to the three products on the basis of direct labor hours. The products have the following budgeted production volume and direct labor hours per unit: Clarinets Oboes Flutes Clarinets Budgeted Production Volume Oboes 7,500 units 1,500 1,200 Total eBook a. Determine the single plantwide overhead rate. $ per direct labor hour Direct Labor Hours Per Unit b. Use the overhead rate in (a) to determine the amount of total and per-unit overhead allocated to each of the three products, rounded to the nearest dollar. Total Factory Overhead Cost $ SA 2.0 3.0 1.5 Per Unit Factory Overhead Cost 4 Previous C Next 11:17 PM 1/25/2024