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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 $17,305
Indirect labor 42,887
Factory electricity 4,891
Indirect materials 10,157
Selling expenses 24,077
Administrative expenses 13,543
Total costs $112,860

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 6,000 0.12
Potato chips 4,500 0.10
Pretzels 3,600 0.15
Total 14,100

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

a. Determine the single plantwide factory overhead rate. $fill in the blank 1 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

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