Single Plantwide Factory Overhead Rate

Salty Sensations Snacks 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		$ 31,360
Indirect labor		78,400
Factory electricity		7,840
Indirect materials		35,400
Selling expenses		25,000
Administrative expenses		18,000
	Total costs	$196,000

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			4,000			0.20
Potato chips			5,000			0.15
Pretzels			2,500			0.40
	Total		11,500

If required, round all per unit 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	$