$ 33,120 Factory depreciation Indirect labor 82,800 8,280 Factory electricity Indirect materials 31,800 Selling expenses Administrative expenses Total costs 22,000 29,000 $207,000 Budgeted Volume (Cases) Processing Hours per Case Tortilla chips Potato chips Pretzels 3,000 0.25 6,000 3,500 12,500 0.10 0.30 Total

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter5: Process Costing
Section: Chapter Questions
Problem 8MC: What is the conversion cost to manufacture insulated travel cups if the costs are: direct materials,...
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Scrumptious Snaks Inc. manufactures three types of snak foods:
tortilla chips, potato chips, and pretzels. The company has budgeted the
following costs for the upcoming periods:

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:

a. Determine the single plantwide factory overhead rate.
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.

$ 33,120
Factory depreciation
Indirect labor
82,800
8,280
Factory electricity
Indirect materials
31,800
Selling expenses
Administrative expenses
Total costs
22,000
29,000
$207,000
Transcribed Image Text:$ 33,120 Factory depreciation Indirect labor 82,800 8,280 Factory electricity Indirect materials 31,800 Selling expenses Administrative expenses Total costs 22,000 29,000 $207,000
Budgeted
Volume (Cases)
Processing Hours
per Case
Tortilla chips
Potato chips
Pretzels
3,000
0.25
6,000
3,500
12,500
0.10
0.30
Total
Transcribed Image Text:Budgeted Volume (Cases) Processing Hours per Case Tortilla chips Potato chips Pretzels 3,000 0.25 6,000 3,500 12,500 0.10 0.30 Total
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