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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 $13,204 Indirect labor 32,723 Factory electricity 3,732 Indirect materials 7,749 Selling expenses 18,371 Administrative expenses 10,333 Total costs $86,112 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 2,700 0.12 Potato chips 3,000 0.15 Pretzels 3,300 0.10 Total 9,000 If round all per-case answers the cent. a. Determine the single plantwide factory overhead rate. X 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
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