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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 $20,888 Indirect labor 51,765 Factory electricity 5,903 Indirect materials 12,260 Selling expenses 29,061 Administrative expenses 16,347 Total costs $136,224 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: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 Tortilla chips 1,200 0.12 Potato chips 3,300 0.10 Pretzels 6,300 0.15 Total 10,800 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 Total
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