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EX 18-3 Single Plantwide Factory Overhead Rate Obj. 2 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: $ 33,120 82,800 8,280 Factory depreciation Indirect labor Factory electricity Indirect materials Selling expenses Administrative expenses Total costs 31,800 22,000 29,000 $207,000 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: Tortilla chips Potato chips Pretzels Total Budgeted Volume (Cases) 3,000 6,000 3,500 12,500 Processing Hours per Case 0.25 0.10 0.30 a. Determine the single plantwide factory overhead rate. Answert 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. a. Determine the single plantwide factory overhead rate. Here is a tip: Recall the formula to compute for the single plantwide factory overhead rate. Explanation Calculate the single plantwide factory overhead rate. To calculate the single plantwide factory overhead rate, add up the amounts for factory depreciation, indirect labor, factory electricity, and indirect materials. Divide the sum by the activity base. Single Plantwide Factory Overhead Rate = Factory Overhead Activity Base $156,000 2.400 = $65 Verified Answer $65