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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 $6,240 Indirect labor 15,465 Factory electricity 1,764 Indirect materials 3,663 Selling expenses 8,682 Administrative expenses 4,884 Total costs $40,698 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 Processing Hours (Cases) Per Case Tortilla chips 1,200 0.12 Potato chips 1,800 0.15 Pretzels 3,000 0.10 Total 6,000 If required, round all per-case answers to the nearest cent. a. Determine the single plantwide factory overhead rate. $ 26 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 Per-Case Factory Overhead Factory Overhead Tortilla chips Potato chips Pretzels Total
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