Salty Sensations Snacks Company manufactures three types of snack foods: tortita chips, potato chips, and pretzels. The company has budgeted the following costs for the upcoming period: Factory depreciation Indirect labor Factory electricity tndirect materials selling expenses Administrative expenses Total costs $31,360 78,400 7,840 35,400 25,000 18,000 $196,000 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: If required, round all per unit ansyers to the nearest cent. a. Determine the single plantwide factory overhead rate. x 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
Salty Sensations Snacks Company manufactures three types of snack foods: tortita chips, potato chips, and pretzels. The company has budgeted the following costs for the upcoming period: Factory depreciation Indirect labor Factory electricity tndirect materials selling expenses Administrative expenses Total costs $31,360 78,400 7,840 35,400 25,000 18,000 $196,000 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: If required, round all per unit ansyers to the nearest cent. a. Determine the single plantwide factory overhead rate. x 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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single Plantwide Factory Overhead Rate Salty Sensations Snacks Company manufactures three types of snack foods: tortita chips, potato chips, and pretzels. The company has budgeted the following costs for the upcoming period: Factory depreciation Indirect labor Factory electricity tndirect materials selling expenses Administrative expenses Total costs
$31,360
78,400 7,840 35,400 25,000 18,000
$196,000
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: If required, round all per unit ansyers to the nearest cent. a. Determine the single plantwide factory overhead rate.
x
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
Transcribed Image Text: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 depreciation
Indirect labor
Factory electricity
Indirect materials
Selling expenses
Administrative expenses
Total costs
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
Processing Hours
Per Case
Tortilla chips
Potato chips
Pretzels
Volume (Cases)
4,000
5,000
2,500
11,500
$ 31,360
78,400
7,840
35,400
25,000
18,000
$196,000
0.20
0.15
0.40
Total
If required, round all per unit ansyvers to the nearest cent.
a. Determine the single plantwide factory overhead rate.
46 X per processing hour
Total
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.
Per Case
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