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		$20,769
Indirect labor		51,471
Factory electricity		5,870
Indirect materials		12,190
Selling expenses		28,896
Administrative expenses		16,254
	Total costs	$135,450

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			1,800			0.12
Potato chips			6,900			0.10
Pretzels			6,000			0.15
	Total		14,700

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	$