Question: Can you please show me how to do this? Single Plantwide Factory Overhead Rate Scrumptious Snacks Inc. manufactures three types of snack foods: tortilla chips,
Can you please show me how to do this?
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 - $24,633
Indirect labor - 61,047
Factory electricity - 6,962
Indirect materials - 14,458
Selling expenses34,272
Administrative expenses19,278
Total costs$160,650
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) and Processing Hours Per Case -
Tortilla chips5,1000.12
Potato chips7,2000.15
Pretzels4,5000.10
If required, round all per-case answers to the nearest cent.
A. Determine the single plantwide factory overhead rate. __________ 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.
Tortilla Chips ________ Total Factory Overhead __________________ Per Case Factory Overhead
Potato chips ________ Total Factory Overhead __________________ Per Case Factory Overhead
Pretzels ________ Total Factory Overhead __________________ Per Case Factory Overhead
Total ________
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