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 $20,559

Indirect labor 50,951

Factory electricity 5,810

Indirect materials 12,068

Selling expenses 28,604

Administrative expenses 16,090

Total costs $134,082

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 chips4,200 0.12

Potato chips3,300 0.15

Pretzels7,200 0.10

Total14,700

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 Overhead Per-Case

Factory Overhead

Tortilla chips

Potato chips

Pretzels

Total