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 $27,764 Indirect labor 68,807 Factory electricity 7,846 Indirect materials 16,297 Selling expenses 38,628 Administrative expenses Tortilla chips Potato chips Pretzels 21,729 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) Total costs Processing Hours Per Case 6,600 3,300 $181,071 6,600 0.10 0.15 0.12 Total 16,500 If required, round all per-case answers to the nearest cent.

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Chapter1: Financial Statements And Business Decisions
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Question Content Area
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
$27,764
Indirect labor
68,807
Factory electricity
7,846
Indirect materials.
16,297
Selling expenses
38,628
Administrative
expenses
Tortilla
chips
Potato
chips
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
Budgeted
Volume
(Cases)
21,729
Total
costs
Tortilla chips
Potato chips
Pretzels
Total
Processing
Hours
Per Case
6,600
3,300
6,600
$181,071
0.10
Total
Factory Overhead
$fill in the blank 2
fill in the blank 4
fill in the blank 6
$fill in the blank 8
0.15
Total
16,500
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
0.12
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.
Per-Case
Factory Overhead
$fill in the blank 3
fill in the blank 5
fill in the blank 7
Transcribed Image Text:Question Content Area 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 $27,764 Indirect labor 68,807 Factory electricity 7,846 Indirect materials. 16,297 Selling expenses 38,628 Administrative expenses Tortilla chips Potato chips 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 Budgeted Volume (Cases) 21,729 Total costs Tortilla chips Potato chips Pretzels Total Processing Hours Per Case 6,600 3,300 6,600 $181,071 0.10 Total Factory Overhead $fill in the blank 2 fill in the blank 4 fill in the blank 6 $fill in the blank 8 0.15 Total 16,500 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 0.12 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. Per-Case Factory Overhead $fill in the blank 3 fill in the blank 5 fill in the blank 7
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