Kettle Snacks makes potato chips, corn chips, and cheese puffs using three different production lines within the same manufacturing plant. Currently, Kettle uses a single plant-wide overhead rate to allocate its $ 3,315,000 of annual manufacturing overhead. Of this amount, $ 2,014,000 is associated with the potato chip line, $ 672,000 is associated with the corn chip line, and $ 629,000 is associated with the cheese puff line. Kettle’s plant is currently running a total of 17,000 machine hours: 10,600 in the potato chip line, 3,000 in the corn chip line, and 3,400 in the cheese puff line. Kettle considers machine hours to be the cost driver of manufacturing overhead costs.
1. What is Kettle’s plantwide overhead rate?
2. Calculate the departmental overhead rates for Kettle’s three production lines. Round all answers to the nearest cent.
3. Which products have been overcosted by the plantwide rate? Which products have been undercosted by the plantwide rate?
Why work with us?
Authenticity:
All of our papers are authentic, as each paper of ours is composed according to your unique requirements.
Confidentiality:
We value you data. Our company is extremely efficient in guarding the privacy of our clients.
100% Money Back Guarantee:
In the event you cancel your order, you get your money back as soon as possible, we give a 100% refund.
24/7 Support:
Our team members are available via email, live chat, and phone.
Revision Policy:
You can apply for a revision if you think your paper could be better. In this case, your paper will be revised either by the specialist assigned to you or by another writer.
How the Platform Works
- Click on 'Place Your Order' tab on the menu or click on 'Order Now' tab at the bottom and a new order page will appear
- Fill in your requirements depending on your needs under the 'PAPER DETAILS' area
- In the next section, fill in the academic level, required number of pages, paper deadline as provided in the drop-down menus.
- To enter your registration details, click on 'CREATE ACCOUNT & SIGN IN'. This step allows you to create an account with us for purposes of record-keeping. Click on 'PROCEED TO CHECK OUT' at the bottom of the page
- The next section requires you to fill in the payment details. Follow the guided process and soon your order will be available for our team to work on.