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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 the

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

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