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 $25,973 Indirect labor 64,368 Factory electricity 7,340 Indirect materials 15,245 Selling expenses 36,136 Administrative expenses 20,327 Total costs $169,389 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 3,300 0.15 Potato chips 6,600 0.10 Pretzels 6,600 0.12 Total 16,500 If required, round all per-case answers to the nearest cent. a. Determine the single plantwide factory overhead rate. X 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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