Question
In: Accounting
Salty Sensations Snacks Company manufactures three types of snack foods: tortilla chips, potato chips, and pretzels....
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:
|
1 |
Factory depreciation |
$30,986.00 |
|
2 |
Indirect labor |
77,464.00 |
|
3 |
Factory electricity |
7,746.00 |
|
4 |
Indirect materials |
33,864.00 |
|
5 |
Selling expenses |
25,300.00 |
|
6 |
Administrative expenses |
18,300.00 |
|
7 |
Total costs |
$193,660.00 |
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:
|
Required: |
||||
|---|---|---|---|---|
|
Budgeted Volume (Cases) |
Processing Hours per Case |
|||
|
Tortilla chips |
4,000 |
0.23 |
||
|
Potato chips |
4,500 |
0.12 |
||
|
Pretzels |
2,500 |
0.40 |
||
|
Total |
11,000 |
|||
|
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. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.*
|
|||
a. Determine the single plantwide factory overhead rate. If required, round your answer to the nearest cent.
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. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. If required, round your answer to the nearest cent.
|
1 |
Total Factory Overhead |
Per Case Factory Overhead |
|
|
2 |
|||
|
3 |
|||
|
4 |
|||
|
5 |
Solutions
Expert Solution
| a. | Single plantwide factory overhead rate=Budgeted factory overhead/Budgeted processing hours | |||||||||
| Budgeted factory overhead: | ||||||||||
| Factory depreciation | 30986 | |||||||||
| Indirect labor | 77464 | |||||||||
| Factory electricity | 7746 | |||||||||
| Indirect materials | 33864 | |||||||||
| Total | 150060 | |||||||||
| Budgeted processing hours=Budgeted cases*Processing hours per case | ||||||||||
| Budgeted Volume ( Cases) |
Processing Hours per Case |
Budgeted Processing Hours |
||||||||
| 4000 | 0.23 | 920 | ||||||||
| 4500 | 0.12 | 540 | ||||||||
| 2500 | 0.4 | 1000 | ||||||||
| 2460 | ||||||||||
| Single plantwide factory overhead rate=150060/2460=$ 61 per hour | ||||||||||
| b. | Total Factory Overhead=Single plantwide factory overhead rate*Budgeted processing hours | |||||||||
| Tortilla chips=61*920=56120 | ||||||||||
| Potato chips=61*540=32940 | ||||||||||
| Pretzels=61*1000=61000 | ||||||||||
| Per case factory overhead=Total factory overhead/Budgeted volume | ||||||||||
| Tortilla chips=56120/4000=$ 14.03 per case | ||||||||||
| Potato chips=32940/4500=$ 7.32 per case | ||||||||||
| Pretzels=61000/2500=$ 24.40 per case | ||||||||||
ekkarill92 answered 1 year agoRelated Solutions
Instructions Salty Sensations Snacks Company manufactures three types of snack foods: tortilla chips, potato chips, and...
Instructions
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:
1
Factory depreciation
$31,023.00
2
Indirect labor
77,557.00
3
Factory electricity
7,756.00
4
Indirect materials
35,056.00
5
Selling expenses
23,100.00
6
Administrative expenses
19,400.00
7
Total costs
$193,892.00
Factory overhead is allocated to the three products on the basis
of processing hours. The products had the following production
budget and processing hours...
Single Plantwide Factory Overhead Rate Salty Sensations Snacks Company manufactures three types of snack foods: tortilla...
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
$20,079
Indirect labor
49,761
Factory electricity
5,675
Indirect materials
11,785
Selling expenses
27,936
Administrative expenses
15,714
Total costs
$130,950
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...
Single Plantwide Factory Overhead Rate Salty Sensations Snacks Company manufactures three types of snack foods: tortilla...
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
$24,331
Indirect labor
60,298
Factory electricity
6,876
Indirect materials
14,281
Selling expenses
33,852
Administrative expenses
19,041
Total costs
$158,679
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...
#2 Single Plantwide Factory Overhead Rate Salty Sensations Snacks Company manufactures three types of snack foods:...
#2
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
$11,233
Indirect labor
27,839
Factory electricity
3,175
Indirect materials
6,593
Selling expenses
15,629
Administrative expenses
8,791
Total costs
$73,260
Factory overhead is allocated to the three products on the basis
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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$20,595
Indirect labor51,040
Factory electricity5,820
Indirect materials12,089
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Administrative expenses16,118
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Scrumptious Snacks Inc. manufactures three types of snack foods:
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Factory depreciation
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Indirect labor
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Factory electricity
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Indirect materials
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Selling expenses
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Administrative expenses
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