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 $33,517 Indirect labor 83,065 Factory electricity 9,472 Indirect materials 19,674 Selling expenses 46,633 Administrative expenses 26,231 Total costs $218,592 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 5,100 0.15 Potato chips 6,600 0.12 Pretzels 7,200 0.10 Total 18,900 If required, round all per-case answers to the nearest cent. a. Determine the single plantwide factory overhead rate. 96 X 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 Per-Case Factory Overhead Factory Overhead Tortilla chips 73,440 x 14.40 X Potato chips 76,032 x 11.52 X Pretzels 69,120 X 9.6 X Total 218,592 X
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 $33,517 Indirect labor 83,065 Factory electricity 9,472 Indirect materials 19,674 Selling expenses 46,633 Administrative expenses 26,231 Total costs $218,592 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 5,100 0.15 Potato chips 6,600 0.12 Pretzels 7,200 0.10 Total 18,900 If required, round all per-case answers to the nearest cent. a. Determine the single plantwide factory overhead rate. 96 X 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 Per-Case Factory Overhead Factory Overhead Tortilla chips 73,440 x 14.40 X Potato chips 76,032 x 11.52 X Pretzels 69,120 X 9.6 X Total 218,592 X
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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(3) ABC:
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
$33,517
Indirect labor
83,065
Factory electricity
9,472
Indirect materials
19,674
Selling expenses
46,633
Administrative expenses
26,231
Total costs
$218,592
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
5,100
0.15
Potato chips
6,600
0.12
Pretzels
7,200
0.10
Total
18,900
If required, round all per-case answers to the nearest cent.
a. Determine the single plantwide factory overhead rate.
96 X 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
Per-Case
Factory Overhead
Factory Overhead
Tortilla chips
73,440| Х
14.40
Potato chips
76,032 X
11.52
Pretzels
69,120 X
9.6 X
Total
$ 218,592 x
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