Salty Sensations Snacks Company manufactures three types of snack foods: tortill
ID: 2336151 • Letter: S
Question
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: 1Factory depreciation S29,168.00 72,920.00 7,292.00 26,220.00 27,000.00 19,700.00 $182,300.00 2 Indirect labor Factory electricity 4 Indirect materials Selling expenses Administrative expenses 7Total costs 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) 3,900 5,100 Processing Hours per Case Tortilla chips Potato chips Pretzels 0.18 0.12 2,200 0.43 Total 11,200 Amount Descriptions Required 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 overnead allocated to each of the three products mou Potato chips Pretzels Setup Quality control Tortilla chips Total under generally accepted accounting principles. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. I required, round your answers to the nearest cent. 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. Total Factory Overhead Per Case Factory OverheadExplanation / Answer
Answers
Products
No. of cases (budgeted)
Processing hours per case
Total processing hours
Tortilla Chips
3,900
0.18
702
Potato Chips
5,100
0.12
612
Pretzels
2,200
0.43
946
Total Processing hours
2,260
Budgeted Cost
$ 182,300.00
Less: Costs other than factory Overheads
Administrative expenses
19,700.00
Selling expenses
27,000.00
Factory Overheads (A)
135,600.00
Total Processing hours
2,260
Predetermined Factory Overhead rate
60.00 = ANSWER
Total Factory Overhead
Per Case Factory Overhead
Tortilla Chips
$ 42,120.00
$ 10.80
Potato Chips
$ 36,720.00
$ 7.20
Pretzels
$ 56,760.00
$ 25.80
--working for above
Total Factory Overhead
Per Case Factory Overhead
Tortilla Chips
=702 hours x $60
=42120/3900 cases
Potato Chips
=612 hours x $60
=36720/5100 cases
Pretzels
=946 hours x $60
=56760/2200 cases
Products
No. of cases (budgeted)
Processing hours per case
Total processing hours
Tortilla Chips
3,900
0.18
702
Potato Chips
5,100
0.12
612
Pretzels
2,200
0.43
946
Total Processing hours
2,260
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