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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: $14,280 35,390 Factory depreciation Indirect labor Factory electricity Indirect materials 4,036 8,382 Selling expenses 19,868 11,176 Administrative expenses Total costs $93,132 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 1,500 0.10 Potato chips 1,200 0.12 Pretzels 6,000 0.15 Total 8,700 If required, round all per-case answers to the nearest cent. a. Determine the single plantwide factory overhead rate. S 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. Per-Case Total Factory Overhead Factory Overhead Tortilla chips Potato chips Pretzels Total
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