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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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