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	$13,756
Indirect labor	34,091
Factory electricity	3,888
Indirect materials	8,073
Selling expenses	19,139
Administrative expenses	10,765
	Total costs	$89,712

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		3,900			0.12
Potato chips		2,400			0.10
Pretzels		2,400			0.15
	Total		8,700

If required, round all per-case answers to the nearest cent.

a. Determine the single plantwide factory overhead rate. $

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