Single Plantwide Factory Overhead Rate Salty Sensations Snacks Company manufactu
ID: 2342375 • Letter: S
Question
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 Indirect labor Factory electricity Indirect materials Selling expenses Administrative expenses $18,899 46,837 5,341 11,093 26,294 14,791 $123,255 Total 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) Tortilla chips Potato chips Pretzels 2,100 2,100 6,000 10,200 Processing Hours Per Case 0.10 0.15 0.12 Total If required, round all per-case answers to the nearest cent. Check My WorkExplanation / Answer
a. Computation of single plantwide overhead rate: Single plantwide overhead rate = Total factory overheads / Total processing hours = $82,170 / 1,245 hours = $66 per processing hour Total factory overheads Factory Depreciation = $ 18,899 Indirect labor = $ 46,837 Factory electricity = $ 5,341 Indirect materials = $ 11,093 Total factory overheads = $ 82,170 Total processing hours Tortilla chips = 2,100 X 0.10 = 210 Potato chips = 2,100 X 0.15 = 315 Pretzeis = 6,000 X 0.12 = 720 Total processing hours = = 1,245 b. Total Factory overheads Per - case Factory overheads Tortilla chips $ 13,860 $ 6.60 Potato chips $ 20,790 $ 9.90 Pretzeis $ 47,520 $ 7.92 Total $ 82,170 $ 24.42 Total Factory overheads Tortilla chips = 210 X 66 = $ 13,860 Potato chips = 315 X 66 = $ 20,790 Pretzeis = 720 X 66 = $ 47,520 Total = = $ 82,170 Per - case Factory overheads Tortilla chips = $13,860 / 2,100 = $ 6.60 Potato chips = $20790 / 2,100 = $ 9.90 Pretzeis = $47,520 / 6,000 = $ 7.92 Total = = $ 24.42