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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 $17,251 42,753 Factory electricity Indirect materials Selling expenses Administrative expenses Total costs 4,875 10,127 24,002 13,501 $112,509 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 Tortilla chips (Cases) 3,900 Per Case 0.15 Potato chips 1,200 0.12 Pretzels Total 6,600 11,700 0.10 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. Per-Case Total Factory Overhead Factory Overhead Tortilla chips Potato chips
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