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Single Plantwide Factory Overhead Rate Scrumptious Snacks Inc. manufactures three types of snack foods: tortilla chips, potato chips, and pretzels. The company has budgeted the
Single Plantwide Factory Overhead Rate Scrumptious Snacks Inc. 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 $12,613 Indirect labor 31 259 Factory electricity 3,565 Indirect materials 7,403 Selling expenses 17,549 Administrative expenses 9,871 Total costs $82,260 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 3,900 0.15 Potato chips 2,100 0.10 Pretzels 4,800 0.12 Total 10,800 If required, round all per-case answers to the nearest cent. a a. Determine the single plantwide factory overhead rate. X per processing hour b. Use the overhead rate in (a) to determine the amount of total and per-case overhead allocated to each of the three products under generally accepted accounting principles. Total Per-Case Factory Overhead Factory Overhead Tortilla chips Potato chips Pretzels Total
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