Single Plantwide Factory Overhead Rate Scrumptious Snacks Inc. manufactures three types of snack foods: tortilla...
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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 $22,887 Indirect labor 56,721 Factory electricity 6,468 Indirect materials 13,434 Selling expenses 31,843 Administrative expenses 17,912 Total costs $149,265 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 Processing Hours (Cases) Per Case Tortilla chips 3,000 0.10 Potato chips 6,000 0.12 Pretzels 3,900 0.15 Total 12,900 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 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 Per-Case - Factory Overhead Factory Overhead Tortilla chips Potato chips Pretzels Total
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