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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 $21,760
Indirect labor 53,927
Factory electricity 6,150
Indirect materials 12,771
Selling expenses 30,275
Administrative expenses 17,029
Total costs $141,912

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 4,800 0.15
Potato chips 5,100 0.12
Pretzels 4,200 0.10
Total 14,100

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 $

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