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 $18,586 Indirect labor 46,061 5,253 Factory electricity Indirect materials 10,908 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 Total 25,859 14,545 $121,212 6,900 2,700 2,100 11,700 0.12 0.15 0.10 If required, round all per-case answers to the nearest cent. a. Determine the single plantwide factory overhead rate. per processing hour

FINANCIAL ACCOUNTING
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Problem Set: Module 3
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
$18,586
Indirect labor
46,061
Factory electricity
5,253
Indirect materials
10,908
Selling expenses
25,859
14,545
$121,212
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
Tortilla chips
Potato chips
Pretzels
eBook
(Cases)
6,900
2,700
2,100
11,700
Processing Hours
Per Case
0.12
0.15
0.10
Total
If required, round all per-case answers to the nearest cent.
a. Determine the single plantwide factory overhead rate.
per processing hour
Transcribed Image Text:Problem Set: Module 3 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 $18,586 Indirect labor 46,061 Factory electricity 5,253 Indirect materials 10,908 Selling expenses 25,859 14,545 $121,212 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 Tortilla chips Potato chips Pretzels eBook (Cases) 6,900 2,700 2,100 11,700 Processing Hours Per Case 0.12 0.15 0.10 Total If required, round all per-case answers to the nearest cent. a. Determine the single plantwide factory overhead rate. per processing hour
Problem Set: Module 3
Total costs
Tortilla chips
Potato chips
Pretzels
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
Total
6,900
2,700
2,100
11,700
Tortilla chips
Potato chips
Pretzels
eBook
Total
$121,212
If required, round all per-case answers to the nearest cent.
a. Determine the single plantwide factory overhead rate.
per processing hour
Factory Overhead
0.12
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.
Total
Per-Case
Factory Overhead
0.10
Transcribed Image Text:Problem Set: Module 3 Total costs Tortilla chips Potato chips Pretzels 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 Total 6,900 2,700 2,100 11,700 Tortilla chips Potato chips Pretzels eBook Total $121,212 If required, round all per-case answers to the nearest cent. a. Determine the single plantwide factory overhead rate. per processing hour Factory Overhead 0.12 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. Total Per-Case Factory Overhead 0.10
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