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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
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 $12,478 Indirect labor 30,924 Factory electricity 3,526 Indirect materials 7,324 Selling expenses 17,361 Administrative expenses 9,765 Total costs $81,378 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 Processing Hours (Cases) Per Case 1,800 0.10 Tortilla chips Potato chips 2,700 0.15 Pretzels 5,400 0.12 Total 9,900 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 Per-Case Factory Overhead Factory Overhead Tortilla chips $ * $ * Potato chips Pretzels XXX XX Total
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