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 $16,891 Indirect labor 41,861 Factory electricity 4,774 Indirect materials 9,914 Selling expenses 23,501 Administrative expenses 13,219 Total costs $110,160
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 $16,891 Indirect labor 41,861 Factory electricity 4,774 Indirect materials 9,914 Selling expenses 23,501 Administrative expenses 13,219 Total costs $110,160
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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
2,700
0.12
Potato chips
1,800
0.10
Pretzels
4,800
0.15
Total
9,300
If required, round all per-case answers to the nearest cent.
a. Determine the single plantwide factory overhead rate.
$4
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
Potato chips
Pretzels
Total
Transcribed Image Text: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
$16,891
Indirect labor
41,861
Factory electricity
4,774
Indirect materials
9,914
Selling expenses
23,501
Administrative expenses
13,219
Total costs
$110,160
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