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		$15,767
Indirect labor		39,074
Factory electricity		4,456
Indirect materials		9,253
Selling expenses		21,936
Administrative expenses		12,339
	Total costs	$102,825

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			2,700			0.15
Potato chips			5,700			0.10
Pretzels			3,300			0.12
	Total		11,700

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	__