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eBook Single Plantwide Factory Overhead Rate Scrumptious Snacks Inc. manufactures three types of snack foods: tortilla chips, potato chips, and pretzels. The company has budgeted
- eBook
- Single Plantwide Factory Overhead Rate
- Scrumptious Snacks Inc. 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$22,461Indirect labor55,664Factory electricity6,348Indirect materials13,183Selling expenses31,250Administrative expenses17,578Total costs$146,484
- 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 CaseTortilla chips5,4000.12Potato chips4,2000.15Pretzels6,0000.10Total15,600
- If required, round all per-case answers to the nearest cent.
- a.Determine the single plantwide factory overhead rate.
- $
- per processing hour
- b.Use the overhead rate in (a) to determine the amount of total and per-case overhead allocated to each of the three products under generally accepted accounting principles.
Total Factory OverheadPer-Case Factory Overhead
- Tortilla chips $ $
- Potato chips $ $
- Pretzels $ $
- Total$
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