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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 $16,886 Indirectlabor 41,847 Factory electricity 4,7?2 Indirect materials 9,911 Selling expenses 23,493 Administrative expenses 13,215 Total costs $110,124 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 3,300 0.15 Potato chips 3,300 [1.12 Pretzels 4,200 0.10 Total 10,800 If required, round all per-case answers to the nearest cent. a. Determine the single plantwide factory overhead rate. $:] per processmg 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 tinder generally accepted accounting principles. Total Per-Case Factory Overhead Factory Overhead Tortilla chips $:] Potato ChlpS :l Pretzels C] Total $:] 5:] :1 :1
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