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 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:

If required, round all per$-$case answers to the nearest 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

Factory Overhead

$x$

$x$

Potato chips

Pretzels

er$-$Case

Factory Overhead