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 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:

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 Factory Overhead

Tortilla chips

Potato chips

Pretzels

Total

Per$-$Case

$