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: 1 Factory depreciation $31,875.00 2 Indirect labor 79,688.00 3 Factory electricity 7,969.00 4 Indirect materials 35,788.00 5 Selling expenses 24,800.00 6 Administrative expenses 19,100.00 7 Total costs $199,220.00 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 (Cases) Processing Hours per Case Tortilla chips 4,100 0.24 Potato chips 4,800 0.20 Pretzels 2,200 0.40 Total 11,100 Required: a. Determine the single plantwide factory overhead rate.* 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. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.* * If required, round your answers to the nearest cent. Determine the single plantwide factory overhead rate. If required, round your answer to the nearest cent. a. _____________________________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. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. If required, round your answer to the nearest cent. b. 1 Total Factory Overhead Per Case Factory Overhead 2 3 4 5
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:
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1 |
Factory |
$31,875.00 |
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2 |
Indirect labor |
79,688.00 |
|
3 |
Factory electricity |
7,969.00 |
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4 |
Indirect materials |
35,788.00 |
|
5 |
Selling expenses |
24,800.00 |
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6 |
Administrative expenses |
19,100.00 |
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7 |
Total costs |
$199,220.00 |
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Factory
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Budgeted Volume (Cases) |
Processing Hours per Case |
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Tortilla chips |
4,100 |
0.24 |
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Potato chips |
4,800 |
0.20 |
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Pretzels |
2,200 |
0.40 |
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Total |
11,100 |
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Required: |
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a. |
Determine the single plantwide factory overhead rate.* |
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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. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.*
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Determine the single plantwide factory overhead rate. If required, round your answer to the nearest cent.
a. _____________________________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. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. If required, round your answer to the nearest cent.
| b. |
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1 |
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Total Factory Overhead |
Per Case Factory Overhead |
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2 |
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3 |
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4 |
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5 |
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