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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 $13,571 Indirect labor 33,632 Factory electricity 3,835 Indirect materials 7,966 Selling expenses 18,881 Administrative expenses 10,621 Total costs $88,506 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 3,000 0.10 Potato chips 3,000 0.15 Pretzels 1,200 0.12 Total 7,200 If required, all per-case answers the nearest cent. a. Determine the single plantwide factory overhead rate. si 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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