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		$18,395
Indirect labor		45,589
Factory electricity		5,199
Indirect materials		10,797
Selling expenses		25,594
Administrative expenses		14,396
	Total costs	$119,970

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			2,400			0.15
Potato chips			3,900			0.10
Pretzels			4,500			0.12
	Total		10,800

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

a. Determine the single plantwide factory overhead rate. $____ 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	$