Salty Sensations Snacks Company manufactures three types of snack foods: tortilla chips, potato chips, and...

60.1K

Verified Solution

Question

Accounting

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

$29,168.00

2

Indirect labor

72,920.00

3

Factory electricity

7,292.00

4

Indirect materials

26,220.00

5

Selling expenses

27,000.00

6

Administrative expenses

19,700.00

7

Total costs

$182,300.00

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

3,900

0.18

Potato chips

5,100

0.12

Pretzels

2,200

0.43

Total

11,200

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.*

* If 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.

1

Total Factory Overhead

Per Case Factory Overhead

2

TORTILLA CHIPS

$

$

3

POTATO CHIPS

$

$

4

PRETZELS

$

$

5

TOTAL

$

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students