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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:

Line Item Description Amount
Factory depreciation $30,062
Indirect labor 74,501
Factory electricity 8,496
Indirect materials 17,645
Selling expenses 41,825
Administrative expenses 23,527
Total costs $196,056

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:

Types of Snacks Budgeted Volume (Cases) Processing Hours per Case
Tortilla chips 6,000 0.15
Potato chips 5,700 0.10
Pretzels 7,200 0.12
Total 18,900

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

a. Determine the single plantwide factory overhead rate. fill in the blank 1 of 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.

Types of Snacks Total Factory Overhead Per Unit Factory Overhead Case
Tortilla chips fill in the blank 1 of 7$ fill in the blank 2 of 7$
Potato chips fill in the blank 3 of 7 fill in the blank 4 of 7
Pretzels fill in the blank 5 of 7 fill in the blank 6 of 7
Total fill in the blank 7 of 7$

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