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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 $22,087 Indirect labor 54,737 Factory electricity 6,242 Indirect materials 12,964 Selling expenses 30,730 Administrative expenses 17,285 Total costs $144,045 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 3,300 0.15 Potato chips 6,000 0.12 Pretzels 2,400 0.10 Total 11,700 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. Per-Case Total Factory Overhead Factory Overhead Tortilla chips Potato chips Pretzels Total
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