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$24,984Indirect labor61,916Factory electricity7,061Indirect materials14,663Selling expenses34,760Administrative expenses19,552Total costs$162,936

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 CaseTortilla chips5,1000.10Potato chips4,2000.15Pretzels5,1000.12Total14,400

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 OverheadPer-Case

Factory OverheadTortilla chips$

$

Potato chips

Pretzels

Total$fi