Single plantwide factory overhead rate Scrumptious Snacks Inc. manufactures three types of snack foods: tortilla...
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Accounting
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:
Line Item Description
Amount
Factory depreciation
$30,062
Indirect labor
74,501
Factory electricity
8,496
Indirect materials
17,645
Selling expenses
41,825
Administrative expenses
23,527
Total costs
$196,056
Factory overhead is allocated to the three products on the basis of processing hours. The products had the following production budget and processing hours per case:
Types of Snacks
Budgeted Volume(Cases)
Processing Hoursper Case
Tortilla chips
6,000
0.15
Potato chips
5,700
0.10
Pretzels
7,200
0.12
Total
18,900
If required, round all per-case answers to the nearest cent.
a. Determine the single plantwide factory overhead rate. fill in the blank 1 of 1$ 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.
Types of Snacks
TotalFactory Overhead
Per UnitFactory Overhead Case
Tortilla chips
fill in the blank 1 of 7$
fill in the blank 2 of 7$
Potato chips
fill in the blank 3 of 7
fill in the blank 4 of 7
Pretzels
fill in the blank 5 of 7
fill in the blank 6 of 7
Total
fill in the blank 7 of 7$
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