Answer:
Scrumptious Snacks Inc.
a. Single plantwide factory overhead rate = $77.51 per hour
b. Total Factory Per-Case Factory
Overhead Overhead
Tortilla chips $20,928 $7.75
Potato chips 17,440 11.63
Pretzels 36,275 9.30
Total $74,643
Explanation:
a) Data and Calculations:
Budgeted costs:
Factory depreciation $17,167
Indirect labor 42,545
Factory electricity 4,852
Indirect materials 10,076
Total factory overhead = $74,640
Selling expenses 23,885
Administrative expenses 13,435
Total costs $111,960
Production budget and processing hours per case:
Budgeted Volume Processing Total
(Cases) Hours Per Case Hours
Tortilla chips 2,700 0.10 270
Potato chips 1,500 0.15 225
Pretzels 3,900 0.12 468
Total 8,100 963
a. Single plantwide factory overhead rate = $77.51 ($74,640/963)
b. Overhead allocated to each product:
Total Total Budgeted Per Case
Hours Overhead Cases Overhead
Tortilla chips 270 * $77.51 = $20,928 2,700 $7.75
Potato chips 225 * $77.51 = 17,440 1,500 $11.63
Pretzels 468 * $77.51 = 36,275 3,900 $9.30
Total 963 = $74,643 8,100
