Cheezy Snack produces rice crackers, wheat crackers, and corn crackers on three different production lines in the same manufacturing facility. Currently Cheezy uses a single plantwide overhead rate to allocate its $3,119,000 of annual manufacturing overhead. Of this amount, $800,000 is associated with the rice cracker line, $1,419,000 with the wheat cracker line, and $900,000 with the corn cracker line. Cheezy's plant is currently running a total of 20,000 machine hours: 6,400 in the rice cracker line, 8,600 with the wheat cracker line, and 5,000 with the corn cracker line. Cheezy's considers machine hours to be the cost driver of MOH costs. What is Cheezy's plant wide overhead rate? options: a) $195.00 / machine hour b) $165.00 / machine hour c) $125.75 / machine hour d)$155.95 / machine hour
Cheezy Snack produces rice crackers, wheat crackers, and corn crackers on three different production lines in the same manufacturing facility. Currently Cheezy uses a single plantwide
options:
a) $195.00 / machine hour
b) $165.00 / machine hour
c) $125.75 / machine hour
d)$155.95 / machine hour
Step by step
Solved in 3 steps
