Question
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 $19,458 Indirect labor 48,222 Factory electricity 5,499 Indirect materials 11,421 Selling expenses 27,072 Administrative expenses 15,228 Total costs $126,900 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 1,500 0.10 Potato chips 6,000 0.15 Pretzels 3,000 0.12 Total 10,500 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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