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		$20,562
Indirect labor		50,958
Factory electricity		5,811
Indirect materials		12,069
Selling expenses		28,608
Administrative expenses		16,092
	Total costs	$134,100

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			5,400			0.12
Potato chips			6,000			0.10
Pretzels			3,600			0.15
	Total		15,000

If required, round all per-case answers to the nearest cent.

a. Determine the single plantwide factory overhead rate. FILL IN BLANK 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