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Salty Sensations Snacks Company manufactures three types of snack foods: tortilla chips, potato chips, and...

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Accounting

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 $23,753
Indirect labor 58,865
Factory electricity 6,713
Indirect materials 13,941
Selling expenses 33,047
Administrative expenses 18,589
Total costs $154,908

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 6,600 0.15
Potato chips 3,300 0.12
Pretzels 6,000 0.10
Total 15,900

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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