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 $12,597 Indirect labor 31,218 Factory electricity 3,560 Indirect materials 7,393 Selling expenses 17,526 Administrative expenses 9,858 Total costs $82,152 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 4,200 Potato chips 2,400 0.12 Pretzels 1,800 0.15 0.10 Total 8,400 If required, round all per-case answers to the nearest cent. a. Determine the single plantwide factory overhead rate. 57 X 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 Feedback Check My Work a. First calculate Budgeted production value for each product x Processing hours. Add together to obtain total processing hours. Recall that factory overhead does not include selling and administrative expenses. Divide the total of overhead costs toy total processing hours to obtain the overhead rate. b. Calculate Overhead Rate in Req. (a) x Processing hours for each product = Overhead for each. Add all overhead amounts to obtain the total. Divide individual overhead amounts by tutigeted production volume for each product to obtain overhead per unit. Learning Objective 2