Single Plantwide Factory Overhead Rate Scrumptious Snacks Inc. manufactures three types of snack foods: tortilla...
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Accounting
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
$15,108
Indirect labor
37,442
Factory electricity
4,270
Indirect materials
8,868
Selling expenses
21,020
Administrative expenses
11,824
Total costs
$98,532
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 HoursPer Case
Tortilla chips
2,100
0.15
Potato chips
2,400
0.12
Pretzels
5,700
0.10
Total
10,200
If required, round all per-case answers to the nearest cent.
a. Determine the single plantwide factory overhead rate. $fill in the blank 1 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.
TotalFactory Overhead
Per-CaseFactory Overhead
Tortilla chips
Potato chips
Pretzels
Total
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