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 $15,732

Indirect labor 38,988

Factory electricity 4,446

Indirect materials 9,234

Selling expenses 21,888

Administrative expenses 12,312

Total costs $102,600

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 1,200 0.15

Potato chips 6,900 0.12

Pretzels 3,600 0.10

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 :