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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 $19,706 Indirect labor 48,838 Factory electricity 5,569 Indirect materials 11,567 Selling expenses 27,418 Administrative expenses 15,422 Total costs $128,520 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 5,100 0.10 Potato chips 4,200 0.15 Pretzels 2,400 0.12 Total 11,700 If required, round all per-case answers to the nearest cent. a. Determine the single plantwide factory overhead rate. 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 X Total
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