1. What is Aunt Ethel's plantwide overhead rate? 2. Calculate the departmental overhead rates for Aunt Ethel'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? Aunt Ethel Snacks makes potato chips, corn chips, and cheese puffs using three different production lines within the same manufacturing plant. Currently, Aunt Ethel uses a single plantwide overhead rate to allocate its $3,311,500 of annual manufacturing overhead. f this amount, $2,070,000 is associated with the potato chip line, $763,000 is associated with the corn chip line, and $478,500 is associated with the cheese puff line. Aunt Ethel's plant is currently running a total of 17,900 machine hours: 11,500 in the potato chip line, 3,500 in the corn chip line, and 2,900 in the cheese puff line. Aunt Ethel considers machine hours to be the cost driver of manufacturing overhead costs. Read the requirements. 1. What is Aunt Ethel's plantwide overhead rate? Determine the formula for calculating the plantwide overhead rate, then calculate the rate. Plantwide overhead rate Department hours Total assets Total department overhead Total machine hours Total liabilities Total manufacturing overhead Total owners' equity Total revenues Get More Help Media - Clear All Check