v2.cengagenow.com 9 Chapter 23 Pre CengageNOWv2 | Online teaching and learning resource from Cengage Learning eBook Print Item 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 $29,957 Indirect labor 74,241 Factory electricity 8,466 Indirect materials 17,584 Selling expenses 41,679 Administrative expenses 23,445 Total costs $195,372 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 7,200 0.10 Potato chips 7,200 0.15 Pretzels 5,100 0.12 Total 19,500 If required, round all per-case answers to the nearest cent. a. Determine the single plantwide factory overhead rate. 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 Check My Work Previous Next All work saved. Email Instructor Save and Exit Submit Assignment for Grading MacBook Air DII DD FO F10 F11 FS F6 F7 FB F4 SE

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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A v2.cengagenow.com
A Chapter 23 Pre
CengageNOwv2 | Online teaching and learning resource from Cengage Learning
h eBook
E Print Item
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
$29,957
Indirect labor
74,241
Factory electricity
8,466
Indirect materials
17,584
Selling expenses
41,679
Administrative expenses
23,445
Total costs
$195,372
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
7,200
0.10
Potato chips
7,200
0.15
Pretzels
5,100
0.12
Total
19,500
If required, round all per-case answers to the nearest cent.
a. Determine the single plantwide factory overhead rate.
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
Check My Work
Previous
Next
All work saved.
Email Instructor
Save and Exit
Submit Assignment for Grading
MacBook Air
DII
DD
F12
FS
F10
F6
F7
FB
F9
F1
F4
24
&
Transcribed Image Text:A v2.cengagenow.com A Chapter 23 Pre CengageNOwv2 | Online teaching and learning resource from Cengage Learning h eBook E Print Item 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 $29,957 Indirect labor 74,241 Factory electricity 8,466 Indirect materials 17,584 Selling expenses 41,679 Administrative expenses 23,445 Total costs $195,372 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 7,200 0.10 Potato chips 7,200 0.15 Pretzels 5,100 0.12 Total 19,500 If required, round all per-case answers to the nearest cent. a. Determine the single plantwide factory overhead rate. 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 Check My Work Previous Next All work saved. Email Instructor Save and Exit Submit Assignment for Grading MacBook Air DII DD F12 FS F10 F6 F7 FB F9 F1 F4 24 &
A v2.cengagenow.com
Chapter 23 Pre
CengageNOwv2 | Online teaching and learning resource from Cengage Learning
h eBook
E Print Item
Potato chips
7,200
0.15
Pretzels
5,100
0.12
Total
19,500
If required, round all per-case answers to the nearest cent.
a. Determine the single plantwide factory overhead rate.
X per processing hour
b. Use the overhead rate in (a) to determine the amount of total and per-case overhead allocated to each e
principles.
the three products under generally accepted accounting
Total
Per-Case
Factory Overhead
Factory Overhead
Tortilla chips
Potato chips
Pretzels
Total
Feedback
Check My Work
a. First calculate:
Budgeted production volume for each product x Processing hours. Add together to obtain total processing hours.
Recall that factory overhead does not include selling and administrative expenses. Divide the total of overhead costs by total processing hours to obtain the overhead rate.
b. Calculate:
Overhead Rate in Req. (a) x Processing hours for each product = Overhead for each. Add all overhead amounts to obtain the total. Divide individual overhead amounts by budgeted
production volume for each product to obtain overhead per unit.
Check My Work
Previous
Next
All work saved.
Email Instructor
Save and Exit
Submit Assignment for Grading
MacBook Air
888
DII
FS
F7
FO
24
&
4
7
8
de
R.
Transcribed Image Text:A v2.cengagenow.com Chapter 23 Pre CengageNOwv2 | Online teaching and learning resource from Cengage Learning h eBook E Print Item Potato chips 7,200 0.15 Pretzels 5,100 0.12 Total 19,500 If required, round all per-case answers to the nearest cent. a. Determine the single plantwide factory overhead rate. X per processing hour b. Use the overhead rate in (a) to determine the amount of total and per-case overhead allocated to each e principles. the three products under generally accepted accounting Total Per-Case Factory Overhead Factory Overhead Tortilla chips Potato chips Pretzels Total Feedback Check My Work a. First calculate: Budgeted production volume for each product x Processing hours. Add together to obtain total processing hours. Recall that factory overhead does not include selling and administrative expenses. Divide the total of overhead costs by total processing hours to obtain the overhead rate. b. Calculate: Overhead Rate in Req. (a) x Processing hours for each product = Overhead for each. Add all overhead amounts to obtain the total. Divide individual overhead amounts by budgeted production volume for each product to obtain overhead per unit. Check My Work Previous Next All work saved. Email Instructor Save and Exit Submit Assignment for Grading MacBook Air 888 DII FS F7 FO 24 & 4 7 8 de R.
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