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$14,366Indirect labor35,602Factory electricity4,060Indirect materials8,432Selling expenses19,987Administrative expenses11,243Total costs$93,690

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 chips3,9000.15Potato chips1,8000.12Pretzels2,4000.10Total8,100

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 OverheadPer-Case

Factory OverheadTortilla chips$fill in the blank 2

$fill in the blank 3

Potato chipsfill in the blank 4

fill in the blank 5

Pretzelsfill in the blank 6

fill in the blank 7

Total$fill in the blank 8