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 $27,357 Indirect labor 67,798 Factory electricity 7,731 Indirect materials 16,058 Selling expenses 38,062 Administrative expenses 21,410 Total costs $178,416 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 5,400 0.10 Potato chips 6,000 0.15 Pretzels 5,700 0.12 Total 17,100 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 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 Factory Overhead Per-Case Factory Overhead Tortilla chips $fill in the blank 2 $fill in the blank 3 Potato chips fill in the blank 4 fill in the blank 5 Pretzels fill in the blank 6 fill in the blank 7 Total $fill in the blank 8

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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	$27,357
Indirect labor	67,798
Factory electricity	7,731
Indirect materials	16,058
Selling expenses	38,062
Administrative expenses	21,410
	Total costs	$178,416

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		5,400		0.10
Potato chips		6,000		0.15
Pretzels		5,700		0.12
	Total		17,100

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

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 Factory Overhead	Per-Case Factory Overhead
Tortilla chips	$fill in the blank 2	$fill in the blank 3
Potato chips	fill in the blank 4	fill in the blank 5
Pretzels	fill in the blank 6	fill in the blank 7
Total	$fill in the blank 8