Aunt Lydia Snacks makes potato chips, com chips, and cheese puffs using three different production lines within the same manufacturing plant. Currently, Aunt Lydia uses a single plantwide overhead rate to allocate its $3,993,750 of annual manufacturing overhead. Of this amount, $2,125,500 is associated with the potato chip line, $1,296,250 is associated with the corn chip line, and $572,000 is associated with the cheese puff line. Aunt Lydia's plant is currently running a total of 17,750 machine hours: 10,900 in the potato chip line, 4,250 in the corn chip line, and 2,600 in the cheese puff line. Aunt Lydia considers machine hours to be the cost driver of manufacturing overhead costs. Read the requirements. 1. What is Aunt Lydia's plantwide overhead rate? Determine the formula for calculating the plantwide overhead rate, then calculate the rate. Plantwide overhead rate Requirements 1. What is Aunt Lydia's plantwide overhead rate? 2. Calculate the departmental overhead rates for Aunt Lydia'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