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		$12,812
Indirect labor		31,751
Factory electricity		3,621
Indirect materials		7,520
Selling expenses		17,825
Administrative expenses		10,027
	Total costs	$83,556

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			1,800			0.12
Potato chips			6,000			0.10
Pretzels			3,000			0.15
	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