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 $15,108 Indirect labor 37,442 Factory electricity Indirect materials Selling expenses Administrative expenses Tortilla chips Potato chips 11,824 Total costs $98,532 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: Pretzels Tortilla chips Potato chips 4,270 Pretzels 8,868 Total Total 21,020 Budgeted Volume (Cases) Processing Hours Per Case 2,100 2,400 If required, round all per-case answers to the nearest cent. a. Determine the single plantwide factory overhead rate. $fill in the blank 1 per processing hour 5,700 10,200 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 Factory Overhead 0.15 0.12 0.10
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 $15,108 Indirect labor 37,442 Factory electricity Indirect materials Selling expenses Administrative expenses Tortilla chips Potato chips 11,824 Total costs $98,532 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: Pretzels Tortilla chips Potato chips 4,270 Pretzels 8,868 Total Total 21,020 Budgeted Volume (Cases) Processing Hours Per Case 2,100 2,400 If required, round all per-case answers to the nearest cent. a. Determine the single plantwide factory overhead rate. $fill in the blank 1 per processing hour 5,700 10,200 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 Factory Overhead 0.15 0.12 0.10
Chapter1: Financial Statements And Business Decisions
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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:
Factory depreciation
$15,108
Indirect labor
Factory electricity
Indirect materials
Selling expenses
Administrative expenses
Tortilla chips
Potato chips
Pretzels
37,442
Tortilla chips
Potato chips
Pretzels
4,270
Total costs $98,532
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:
Total
Total
8,868
21,020
11,824
Budgeted Volume
(Cases)
Processing Hours
Per Case
2,100
2.400
5,700
If required, round all per-case answers to the nearest cent.
a. Determine the single plantwide factory overhead rate.
$fill in the blank 1 per processing hour
10,200
Total
Per-Case
Factory Overhead Factory Overhead
0.15
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.
0.12
0.10
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