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Category > Accounting Posted 12 Jul 2017 My Price 6.00

Single plantwide factory overhead rate

Single plantwide factory overhead rate 

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

$ 31,360

Indirect labor

78,400

Factory electricity

7,840

Indirect materials

35,400

Selling expenses

25,000

Administrative expenses

18,000

Total costs

$196,000

 

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

4,000

0.20

Potato chips

5,000

0.15

Pretzels

2,500

0.40

Total 11,500

 

a. Determine the single plantwide factory overhead rate.

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.

Answers

Maurice Tutor
(5)
Status NEW Posted 12 Jul 2017 11:07 PM My Price 6.00

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