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

$22,952

Indirect labor

56,881

Factory electricity

6,486

Indirect materials

13,473

Selling expenses

31,933

Administrative expenses

17,963

Total costs

$149,688

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

4,200

0.15

Potato chips

2,700

0.10

Pretzels

5,100

0.12

Total

12,000

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

Tortilla chips

$

Potato chips

$

Pretzels

$

Per-Case

Factory Overhead

Tortilla chips

$

Potato chips

$

Pretzels

$

Total

$

How do you calculate the total factory overhead for each product?