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$22,759Indirect labor56,403Factory electricity6,432Indirect materials13,358Selling expenses31,665Administrative expenses17,811Total costs$148,428

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 chips3,6000.15Potato chips6,3000.12Pretzels3,0000.10Total12,900

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