Factory overhead is allocated to the three products on the basis of processing hours. The products had the fulluhours per case:BudgetedProcessing HoursVolume (Cases)Per CaseTortilla chips3,0000.25Potato chips6,0000.10Pretzels3,5000.30Total12,500If required, round all per unit answers to the nearest cent.a. Determine the single plantwide factory overhead rate.per processing hourb. Use the overhead rate in (a) to determine the amount of total and per-case overhead allocated to each of the three products under generallyaccepted accounting principles.Per CaseTotalFactory OverheadFactory OverheadTortilla chipsPotato chipsPretzelsTotal JOWV2 | Online teachin Xssignment/takeAssignmentMain.do?invoker3&takeAssignmentSessionLocator=&inprogress3falseеВookSingle Plantwide Factory Overhead RateScrumptious Snacks Inc. manufactures three types of snack foods: tortilla chips, potato chips, and pretzels. The company has budgeted the followingcosts for the upcoming period:Factory depreciation$33,120Indirect labor82,800Factory electricity8,280Indirect materials31,800Selling expenses22,000Administrative expenses29,000Total costs$207,000Factory overhead is allocated to the three products on the basis of processing hours. The products had the following production budget and processinghours per case:BudgetedProcessing HoursVolume (Cases)Per CaseTortilla chips3,0000.25Potato chips6,0000.10Pretzels3,5000.30Total12,500If required, round all per unit answers to the nearest cent.Check My WorkNext

Pre-determined overhead rate = Estimated Factory OverheadsEstimated Processing Hours

Factory overhead is allocated to thể three products on the Basis UI proce hours per case: Budgeted Processing Hours Volume (Cases) Per 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. 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.

Factory overhead is allocated to thể three products on the Basis UI proce hours per case: Budgeted Processing Hours Volume (Cases) Per 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. 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Kunkel Company makes two products and uses a conventional costing system in which a single plantwide predetermined overhead rate is computed based on direct labor - hours. Data for the two products for the upcoming year follow: Mercon Wurcon Direct materials cost per unit $ 12.00 $ 9.00 Direct labor cost per unit $ 15.00 $ 17.00 Direct labor - hours per unit 0.50 3.25 Number of units produced 2,000 4,000 These products are customized to some degree for specific customers. Required: 1. The company's manufacturing overhead costs for the year are expected to be $560,000. Using the company's conventional costing system, compute the unit product costs for the two products. 2. Management is considering an activity - based costing system in which half of the overhead would continue to be allocated on the basis of direct labor - hours and half would be allocated on the basis of engineering design time. This time is expected to be distributed as follows during the upcoming year: Mercon Wurcon…
Given the following information, determine the product cost of one unit: Direct Materials = $60; Direct labor = $10; Apply Overhead based on $2 per Direct Labor hour; Direct labor hours is 4 hours per unit. a. $70 per unit b. $80 per unit c. $78 per unit d. $85 per unit Contribution margin is sales less: a. Fixed overhead and fixed selling and administrative expenses b. Variable Cost of goods sold and variable selling & administrative expenses c. Variable selling and administrative expemses and Fixed selling and administrative expenses d. variable cost of goods sold An investment generates an operating income of $100,000, and the average operating assets are $400,000. What is the return on the investment? a. 100% b. 75% c. 25% d. 20%
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A standard cost card for one unit of a product may look like the following: Direct materials (4 pounds @ $1.25 per pound) $5.00 Direct labor (0.1 DLH @ $18 per hour) 1.80 Variable overhead (0.1 DLH @ $2.00 per hour) 0.20 Fixed overhead (0.1 DLH @ $4.60 per hour) 0.46 Total cost per unit $7.46 The standard cost to produce one unit is $7.46. The standard cost to produce 600 units are $ Of course, this is a simplification as the standard cost does not take fixed and variable costs into account. However, if the firm is producing at or near capacity, then the cost per unit of $7.46 could be multiplied by total units to get total standard cost. The standard cost card gives both unit and cost standards. The direct materials total of $5.00 is based on the use of four pounds of material at $1.25 per pound. Similarly, it should take six minutes (0.1 direct labor hour) to produce one unit. This makes it easy to determine total quantities and cost would be for multiple units. If 400 units were…
A company manufactures a product with three models, each with different direct material costs and labour hour required and monthly production volume as follows: Labor rate is $10 per hour. The total manufacturing overhead is estimated to be $103,000 per month. Required: a) The manufacturing overhead is allocated to the three models based on labor hour. Compute the pre-determined overhead rate and the unit product cost of Model A. b) The company is considering to use the activity-based costing and gathers the following data related to the cost and activities: Model A Model B Model C Units of production 1,700 1,200 1,100 Labour hour required 0.3 0.6 0.7 Direct material costs 30 40 50 Expected Activity Activity Cost Pool Overhead Costs Model A Model B Model C Activity 1 $30,000 1,000 600 400…