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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
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 Indirect labor Factory electricity $28,280 70,086 Indirect materials Selling expenses Administrative expenses Total costs 7,992 16,600 39,347 22,132 $184,437 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 4,500 0.15 Potato chips 5,400 0.10 Pretzels 5,400 0.12 Total 15,300 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. Tortilla chips Potato chips Pretzels Total Per-Case Factory Overhead Factory Overhead $
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