Use the factory overhead rate in a to determine the amount

Assignment Help Accounting Basics

Reference no: EM13574944

Krispy Treats Snack Food 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		$26,275
Indirect labor		65,117
Factory electricity		7,426
Indirect materials		15,422
Selling expenses		36,557
Administrative expenses		20,563
	Total costs	$171,360

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			5,100	0.10
Potato chips			5,400	0.15
Pretzels			6,000	0.12
	Total		16,500

If required, round all per-case answers to the nearest cent.

a. Determine the single plantwide factory overhead rate.
$ 56 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.

	Total Factory Overhead	Per-Case Factory Overhead
Tortilla chips	$	$
Potato chips
Pretzels
Total	$ Not sure how to calculate these

Reference no: EM13574944

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