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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 following costs for the upcoming period:

Factory depreciation$16,091 Indirect labor39,877 Factory electricity4,547 Indirect materials9,445 Selling expenses22,387 Administrative expenses12,593 Total costs$104,940

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 CaseTortilla chips 4,500 0.12 Potato chips 3,600 0.15 Pretzels 5,100 0.10 Total 13,200

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 OverheadPer-Case Factory OverheadTortilla chips Potato chips Pretzels Total