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	$14,617
Indirect labor	36,225
Factory electricity	4,131
Indirect materials	8,579
Selling expenses	20,337
Administrative expenses	11,439
	Total costs	$95,328

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			0.10
Potato chips		2,400			0.12
Pretzels		2,100			0.15
	Total		8,400

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

a. Determine the single plantwide factory overhead rate. $64.00 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	24,960
Potato chips	18,432
Pretzels	20,160
Total	63,552