Question: Uncle Ernie Snacks make potato chips, corn chips, and cheese puffs using three different production lines within the same manufacturing plant. Currently, Uncle Ernie uses

Uncle Ernie Snacks make potato chips, corn chips, and cheese puffs using three different production lines within the same manufacturing plant. Currently, Uncle Ernie uses a single plantwide overhead rate to allocate its $3,845,400 of annual manufacturing overhead. Of this amount, $1,785,000 is associated with the potato chip line, $1,310,400 is associated with the corn chip line, and $750,000 is associated with the cheese puff line. Uncle Ernie's plant is currently running a total of 17,400 machine hours: 10,500 in the potato chip line, 3,150 in the corn chip line, and 3,750 in the cheese puff line. Uncle Ernie considers machine hours to be the cost driver of manufacturing overhead costs.
 Uncle Ernie Snacks make potato chips, corn chips, and cheese puffs

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