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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

  1. eBook
  2. Single Plantwide Factory Overhead Rate
  3. 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:
  4. Factory depreciation$22,461Indirect labor55,664Factory electricity6,348Indirect materials13,183Selling expenses31,250Administrative expenses17,578Total costs$146,484
  5. 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:
  6. Budgeted Volume
  7. (Cases)Processing Hours
  8. Per CaseTortilla chips5,4000.12Potato chips4,2000.15Pretzels6,0000.10Total15,600
  9. If required, round all per-case answers to the nearest cent.
  10. a.Determine the single plantwide factory overhead rate.
  11. $
  12. per processing hour
  13. 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

  1. Tortilla chips $ $
  2. Potato chips $ $
  3. Pretzels $ $
  4. Total$

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