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 $16,499 Indirect labor40,890 Factory electricity 4,663 Indirect materials 9,684 

Selling expenses 22,956 Administrative expenses12,912 Total costs $107,604

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 1,8000. 12Potato chips 2,7000.15 Pretzels 6,6000.10 Total 11,100

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 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 Factory Overhead Per-Case Factory Overhead Tortilla chips Potato chips Pretzels Total