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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 $24,420
Indirect labor 60,520
Factory electricity 6,901
Indirect materials 14,335
Selling expenses 33,976
Administrative expenses 19,112
Total costs $159,264

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 Case
Tortilla chips 6,600 0.15
Potato chips 6,900 0.10
Pretzels 1,800 0.12
Total 15,300

A. Answer is 56 per processing unit.

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 Overhead Per-Case Factory Overhead
Tortilla chips $fill in the blank 2 $fill in the blank 3
Potato chips fill in the blank 4 fill in the blank 5
Pretzels fill in the blank 6 fill in the blank 7
Total $fill in the blank 8

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