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		$13,766
Indirect labor		34,115
Factory electricity		3,890
Indirect materials		8,079
Selling expenses		19,152
Administrative expenses		10,773
	Total costs	$89,775

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			4,500			0.15
Potato chips			4,500			0.12
Pretzels			3,600			0.10
	Total		12,600

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

a. Determine the single plantwide factory overhead rate. _____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.

	Total Factory Overhead	Per-Case Factory Overhead
Tortilla chips
Potato chips
Pretzels
Total