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		$21,774
Indirect labor		53,961
Factory electricity		6,153
Indirect materials		12,780
Selling expenses		30,294
Administrative expenses		17,040
	Total costs	$142,002

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			6,900			0.12
Potato chips			6,900			0.10
Pretzels			3,600			0.15
	Total		17,400

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

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