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 $19,303 Indirect labor 47,839 Factory electricity 5,455 Indirect materials 11,331 Selling expenses 26,857 Administrative expenses 15,107 Total costs $125,892 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 5,700 0.10 Potato chips 4,200 0.12 Pretzels 3,600 0.15 Total 13,500 If required, round all per-case answers to the nearest cent. a. Determine the single plantwide factory overhead rate. $fill in the blank 1 13,500 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 5,710 $fill in the blank 3 Potato chips fill in the blank 4 4,212 fill in the blank 5 Pretzels fill in the blank 6 3,615 fill in the blank 7 Total $fill in the blank 8
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