Single Plantwide Factory Overhead Rate

Krispy Treats Snack Food Company 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		$25,193
Indirect labor		62,436
Factory electricity		7,120
Indirect materials		14,787
Selling expenses		35,052
Administrative expenses		19,716
	Total costs	$164,304

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			4,800			0.10
Potato chips			4,800			0.12
Pretzels			6,000			0.15
	Total		15,600

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 factory overhead rate in (a) to determine the amount of total and per-case factory overhead allocated to each of the three products under generally accepted accounting principles.

	Total Factory Overhead	Per-Case Factory Overhead
Tortilla chips	$	$
Potato chips
Pretzels
Total	$