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$18,609Indirect labor46,119Factory electricity5,259Indirect materials10,923Selling expenses25,891Administrative expenses14,564Total costs$121,365

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 CaseTortilla chips4,5000.12Potato chips1,5000.15Pretzels5,4000.10Total11,400

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 OverheadPer-Case

Factory OverheadTortilla chips$$Potato chipsPretzelsTotal$