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
|
|