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

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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.

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