Scrumptious Snacks Inc. manufactures three types of snack foods: tortilla chips, potato c 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: Tortilla chips Potato chips Pretzels Total Tortilla chips Potato chips Budgeted Volume Pretzels (Cases) Total 2,400 7,200 3,600 13,200 If required, round all per-case 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 overheac allocated to each of the three products under generally accepted accounting principles. $22,566 55,924 6,377 13,245 31,396 17,660 $147,168 Total Processing Hours Per Case Factory Overhead 0.10 0.15 0.12 Per-Case Factory Overhead
Scrumptious Snacks Inc. manufactures three types of snack foods: tortilla chips, potato c 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: Tortilla chips Potato chips Pretzels Total Tortilla chips Potato chips Budgeted Volume Pretzels (Cases) Total 2,400 7,200 3,600 13,200 If required, round all per-case 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 overheac allocated to each of the three products under generally accepted accounting principles. $22,566 55,924 6,377 13,245 31,396 17,660 $147,168 Total Processing Hours Per Case Factory Overhead 0.10 0.15 0.12 Per-Case Factory Overhead
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Single Plantwide Factory Overhead Rate
Scrumptious Snacks Inc. manufactures three types of snack foods: tortilla chips, potato chips.
and pretzels. The company has budgeted the following costs for the upcoming period:
$22,566
55,924
6,377
13,245
31,396
17,660
$147,168
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 Volume
(Cases)
Tortilla chips
Potato chips
Pretzels
Total
Tortilla chips
Potato chips
Pretzels
2,400
7,200
3,600
13,200
If required, round all per-case answers to the nearest cent.
a. Determine the single plantwide factory overhead rate.
per processing hour
Total
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.
$
Processing Hours
Per Case
Total
Factory Overhead
0.10
0.15
0.12
Per-Case
Factory Overhead
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