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$22,588Indirect labor55,979Factory electricity6,384Indirect materials13,257Selling expenses31,427Administrative expenses17,677Total costs$147,312

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 chips3,6000.10

Potato chips6,0000.15

Pretzels2,7000.12

Total12,300

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 Overhead

Tortilla chips

Potato chips

Pretzels

Total