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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$16,607 Indirect labor41,156 Factory electricity4,693 Indirect materials9,748 Selling expenses23,105 Administrative expenses12,997 Total costs$108,306

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 CaseTortilla chips 4,800 0.12 Potato chips 4,800 0.10 Pretzels 3,900 0.15 Total 13,500

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.

Total Factory OverheadPer-Case Factory OverheadTortilla chips$fill in the blank 2$fill in the blank 3Potato chipsfill in the blank 4fill in the blank 5Pretzelsfill in the blank 6fill in the blank 7Total $fill in the blank 8

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