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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

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 $20,344
Indirect labor 50,418
Factory electricity 5,749
Indirect materials 11,941
Selling expenses 28,305
Administrative expenses 15,921
Total costs $132,678

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 chips 3,900 0.12
Potato chips 5,400 0.10
Pretzels 4,200 0.15
Total 13,500

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 Overhead Per-Case Factory Overhead
Tortilla chips $fill in the blank 2 $fill in the blank 3
Potato chips fill in the blank 4 fill in the blank 5
Pretzels fill in the blank 6 fill in the blank 7
Total $fill in the blank 8

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