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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 $31,536 Indirect labor 78,154 Factory electricity 8,912 Indirect materials 18,510 Selling expenses 43,876 Administrative expenses 24,680 Total costs $205,668 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 Processing Hours (Cases) Per Case Tortilla chips 7,200 0.12 Potato chips 6,000 0.10 Pretzels 6,000 0.15 Total 19,200 If required, round all per-case answers to the nearest cent. -. a. Determine the single plantwide factory overhead rate. $ 90.84 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 Per-Case Factory Overhead Tortilla chips Potato chips Pretzels Total $
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