Texas Pete Snack Food Company 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 ........$12,900

Indirect labor ............30,200

Factory electricity .........3,500

Indirect materials ..........6,650

Selling expenses .........17,025

Administrative expenses .......9,600

Total costs .............$79,875

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:

a. Determine the single plant-wide factory overhead rate.
b. Use the factory overhead rate in (a) to determine the amount of total and per-case factory overhead allocated to each of the three products under generally accepted accountingprinciples.

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Budgeted Processing Volume (Cases) Production Hours per Case Tortilla chips Potato chips Pretzels 3,000 4,800 1,500 9,300 0.12 0.10 0.15 Total