Single Plantwide Factory Overhead Rate
Salty Sensations Snacks Company manufactures three types ofsnack foods: tortilla chips, potato chips, and pretzels. Thecompany has budgeted the following costs for the upcomingperiod:
| Factory depreciation | $24,331 | |
| Indirect labor | 60,298 | |
| Factory electricity | 6,876 | |
| Indirect materials | 14,281 | |
| Selling expenses | 33,852 | |
| Administrative expenses | 19,041 | |
| Total costs | $158,679 | |
Factory overhead is allocated to the three products on the basisof processing hours. The products had the following productionbudget and processing hours per case:
| Budgeted Volume
(Cases) | Processing Hours
Per Case |
| Tortilla chips | | 6,000 | | | 0.10 | | |
| Potato chips | | 6,900 | | | 0.15 | | |
| Pretzels | | 2,700 | | | 0.12 | | |
| Total | | 15,600 | | | | | |
If required, round all per-case answers to the nearest cent.
a. Determine the single plantwide factoryoverhead rate.
$ per processing hour
b. Use the factory overhead rate in (a) todetermine the amount of total and per-case factory overheadallocated to each of the three products under generally acceptedaccounting principles.
| Total
Factory Overhead | Per-Case
Factory Overhead |
| Tortilla chips | $ | $ |
| Potato chips | | |
| Pretzels | | |
| Total | $ | |
