Question

Savory Snack Food Company 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 .......... $ 21,120
Indirect labor ............ 52,800
Factory electricity .......... 5,280
Indirect materials .......... 18,800
Selling expenses ........... 22,000
Administrative expenses ........ 12,000
Total costs .............. $132,000
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:


a. Determine the single plantwide factory overhead rate.
b. Use the factory overhead rate in (a) to determine the amount of total and per- case factory overhead allocated to each of the three products under generally accepted accountingprinciples.


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  • CreatedJune 27, 2014
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