Salty Sensations Snacks Company 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 $20,446 Indirect labor 50,671 Factory electricity 5,778 Indirect materials 12,001 Selling expenses 28,447 Administrative expenses 16,001 Total costs $133,344 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 1,200 0.10 Potato chips 6,300 0.15 Pretzels 2,700 0.12 Total 10,200 If required, round all per-case answers to the nearest cent. a. Determine the single plantwide factory overhead rate. 10.41 per processing hour b. Use the factory overhead rate in (a) to determine the amount of total and per-case factory overhead allocated to each of the three products under generally accepted accounting principles Total Per-Case Factory Overhead Factory Overhead Tortilla chips Putato chips Pretzels Total

Salty Sensations Snacks Company 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 $20,446 Indirect labor 50,671 Factory electricity 5,778 Indirect materials 12,001 Selling expenses 28,447 Administrative expenses 16,001 Total costs $133,344 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 1,200 0.10 Potato chips 6,300 0.15 Pretzels 2,700 0.12 Total 10,200 If required, round all per-case answers to the nearest cent. a. Determine the single plantwide factory overhead rate. 10.41 per processing hour b. Use the factory overhead rate in (a) to determine the amount of total and per-case factory overhead allocated to each of the three products under generally accepted accounting principles Total Per-Case Factory Overhead Factory Overhead Tortilla chips Putato chips Pretzels Total

Name: **Single Plantwide Factory Overhead Rate**Salty Sensations Snacks Com
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Description: **Single Plantwide Factory Overhead Rate**Salty Sensations Snacks Company manufactures three types of snack foods: tortilla chips, potato chips, and pretzels. The company has budgeted the following costs for the upcoming period:- Factory depreciatio

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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