Single Plantwide Factory Overhead Rate Salty Sensations Snacks Company manufactures three types of snack foods:...
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Accounting
Single Plantwide Factory Overhead Rate Salty Sensations Snacks 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
$11,668
Indirect labor
28,916
Factory electricity
3,297
Indirect materials
6,849
Selling expenses
16,234
Administrative expenses
9,131
Total costs
$76,095
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
1,200
0.10
Potato chips
3,000
0.12
Pretzels
5,700
0.15
Total
9,900
If required, round all per-case answers to the nearest cent.
a. Determine the single plantwide factory overhead rate. $__________ per processing hour
b. Use the factory overhead rate in (a) to determine the amount of total and per-case factory overhead allocated to each of the three products under generally accepted accounting principles.
Total Factory Overhead
Per-Case Factory Overhead
Tortilla chips-$
Potato chips-$
Pretzels-$
Total-$
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