Salty Sensations Snacks Company manufactures three types of snack foods: tortilla chips, potato chips, and...
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Accounting
Salty Sensations Snacks 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
$23,753
Indirect labor
58,865
Factory electricity
6,713
Indirect materials
13,941
Selling expenses
33,047
Administrative expenses
18,589
Total costs
$154,908
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
6,600
0.15
Potato chips
3,300
0.12
Pretzels
6,000
0.10
Total
15,900
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 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 accounting principles.
Total Factory Overhead
Per-Case Factory Overhead
Tortilla chips
$
$
Potato chips
Pretzels
Total
$
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