Single Plantwide Factory Overhead RateScrumptious Snacks Inc. manufactures three types ofsnack foods: tortilla chips, potato chips, and pretzels.The company has budgeted the following costs for theupcoming period:Factory depreciationIndirect laborFactory electricityIndirect materialsSelling expensesAdministrative expensesTotal costsFactory overhead is allocated to the three products onthe basis of processing hours. The products had thefollowing production budget and processing hours percase:Tortilla chipsPotato chipsPretzelsTotal3,3002,1001,8007,200If required, round all per-case answers to thenearest cent.Budgeted Volume(Cases)Tortilla chipsPotato chipsPretzels$11,06627,4253,1276,49615,3968,661$72,171a. Determine the single plantwide factory overheadrate.$Totalper processing hourb. Use the overhead rate in (a) to determine theamount of total and per-case overhead allocated to eachof the three products under generally acceptedaccounting principles.Processing HoursPer CaseTotal0.120.150.10Factory OverheadPer-CaseFactory Overhead

Factory Overhead Rate: A manufacturing overhead rate is the typical amount of factory overhead costs…

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 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: Pretzels Total Budgeted Volume (Cases) Tortilla chips Potato chips Pretzels 3,300 2,100 1,800 7,200 Total If required, round all per-case answers to the nearest cent. $11,066 27,425 3,127 6,496 a. Determine the single plantwide factory overhead rate. $ 15,396 8,661 $72,171 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 $ Processing Hours Per Case 0.12 0.15 0.10 Per-Case Factory Overhead

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 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: Pretzels Total Budgeted Volume (Cases) Tortilla chips Potato chips Pretzels 3,300 2,100 1,800 7,200 Total If required, round all per-case answers to the nearest cent. $11,066 27,425 3,127 6,496 a. Determine the single plantwide factory overhead rate. $ 15,396 8,661 $72,171 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 $ Processing Hours Per Case 0.12 0.15 0.10 Per-Case Factory Overhead

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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