Question: I figured out the total and $ per processing hour I am stuck on the rest not sure where I am going wrong. Help appreciated

I figured out the total and $ per processing hour I amI figured out the total and $ per processing hour I am stuck on the rest not sure where I am going wrong. Help appreciated and thank you.

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 $20,170 Indirect labor 49,987 Factory electricity 5,700 Indirect materials 11,839 Selling expenses 28,063 Administrative expenses 15,785 Total costs $131,544 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 5,700 0.15 Potato chips 1,800 0.10 Pretzels 6,600 0.12 Total 14,100 If required, round all per-case answers to the nearest cent. a. Determine the single plantwide factory overhead rate. 48 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 Factory Overhead Per-Case Factory Overhead Tortilla chips 7.2 X 41,040 X Potato chips 4.8 X 8,640 X Pretzels 5.76 x 38,016 X Total 87,696

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!