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