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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 $
Indirect labor
Factory electricity
Indirect materials
Selling expenses
Administrative expenses
Total costs $
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
Potato chips
Pretzels
Total
If required, round all percase answers to the nearest cent.
a Determine the single plantwide factory overhead rate.
$fill in the blank
per processing hour
b Use the overhead rate in a to determine the amount of total and percase overhead allocated to each of the three products under generally accepted accounting principles.
Total
Factory Overhead PerCase
Factory Overhead
Tortilla chips $fill in the blank
$fill in the blank
Potato chips fill in the blank
fill in the blank
Pretzels fill in the blank
fill in the blank
Total $fill in the blank
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