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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
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 Indirect labor Factory electricity Indirect materials Selling expenses Administrative expenses Total costs $27,572 68,332 7,792 16,184 38,362 21,578 $179,820 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 Tortilla chips (Cases) 6,000 Potato chips 5,400 Pretzels 4,500 Total 15,900 Processing Hours per Case 0.15 0.12 0.10 If required, round all per-case answers to the nearest cent. a. Determine the single plantwide factory overhead rate. X 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. a. Determine the single plantwide factory overhead rate. X 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 Per Unit Factory Overhead Case Tortilla chips Potato chips Pretzels Factory Overhead 9,900 x 7,128 x 4,950 x Total 21,978 x 1.65 X 1.32 X 1.1 X
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