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: Factory depreciation $28,280 Indirect labor 70,086 7,992 16,600 39,347 22,132 $184,437 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 Processing Hours (Cases) Per Case Tortilla chips Potato chips Pretzels 4,500 5,400 5,400 15,300 Tortilla chips Potato chips Pretzels 0.15 Total If required, round all per-case answers to the nearest cent. a. Determine the single plantwide factory overhead rate. $ per processing hour 0.10 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. Total Per-Case Factory Overhead 0.12 Factory Overhead
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: Factory depreciation $28,280 Indirect labor 70,086 7,992 16,600 39,347 22,132 $184,437 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 Processing Hours (Cases) Per Case Tortilla chips Potato chips Pretzels 4,500 5,400 5,400 15,300 Tortilla chips Potato chips Pretzels 0.15 Total If required, round all per-case answers to the nearest cent. a. Determine the single plantwide factory overhead rate. $ per processing hour 0.10 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. Total Per-Case Factory Overhead 0.12 Factory Overhead
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 3E: Scrumptious Snacks Inc. manufactures three types of snack foods: tortilla chips, potato chips, and...
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