Question

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 $21,114 indirect labor 52,326 factory electricity 5,967 indirect materials 12,393 selling expenses 29,376 administrative expenses 16,524 total costs $137,700 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 4,800 0.12 pretzels 2,700 0.10 total 14,100 if required, round all per-case answers to the nearest cent. a. determine the single plantwide factory overhead rate. $fill in the blank 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. total factory overhead per-case factory overhead tortilla chips $fill in the blank 2 $fill in the blank 3 potato chips fill in the blank 4 fill in the blank 5 pretzels fill in the blank 6 fill in the blank 7 total $. a) $1.50 per processing hour

b)Tortilla Chips: $0.32 per case, Total: $2,112
c)Potato Chips: $0.24 per case, Total: $1,152
d)Pretzels: $0.20 per case, Total: $540

Answer 1

The single plantwide factory overhead rate is $97.52 per processing hour. The factory overhead allocated to each product is $14.63 per case for tortilla chips, $11.70 per case for potato chips, and $9.75 per case for pretzels.

Step-by-step explanation:

To determine the single plantwide factory overhead rate, we need to divide the total factory overhead by the total processing hours. Here's the calculation:

Factory overhead rate = Total factory overhead / Total processing hours

Factory overhead rate = $137,700 / 1,410

Factory overhead rate = $97.52 per processing hour

To allocate the factory overhead to each product, we multiply the processing hours per case by the factory overhead rate. Here are the calculations:

Tortilla chips: $0.15 x $97.52 = $14.63 per case

Potato chips: $0.12 x $97.52 = $11.70 per case

Pretzels: $0.10 x $97.52 = $9.75 per case