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#2 Single Plantwide Factory Overhead Rate Salty Sensations Snacks Company manufactures three types of snack foods:...

#2

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 $11,233
Indirect labor 27,839
Factory electricity 3,175
Indirect materials 6,593
Selling expenses 15,629
Administrative expenses 8,791
Total costs $73,260

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 5,700 0.15
Potato chips 1,800 0.12
Pretzels 1,500 0.10
Total 9,000

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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