Aunt Dorothy Snacks makes potato chips, corn chips, and cheese puffs using three different production lines within the same manufacturing plant. Currently, Aunt Dorothy uses a single plantwide overhead rate to allocate its $3,845,400 of annual manufacturing overhead. Of this amount, $1,785,000 is associated with the potato chip line, $1,310,400 is associated with the corn chip line, and $750,000 is associated with the cheese puff line. Aunt Dorothy's plant is currently running a total of 17,400 machine hours: 10,500 in the potato chip line, 3,150 in the corn chip line, and 3,750 in the cheese puff line. Aunt Dorothy considers machine hours to be the cost driver of manufacturing overhead costs. Read the requirements. 1. What is Aunt Dorothy's plantwide overhead rate? Determine the formula for calculating the plantwide overhead rate, then calculate the rate. Total manufacturing overhead Total machine hours Plantwide overhead rate + |= per machine hour Requirements 1. What is Aunt Dorothy's plantwide overhead rate? 2. Calculate the departmental overhead rates for Aunt Dorothy'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? Print Done