Single Plantwide Factory Overhead Rate Scrumptious Snacks Inc. manufactures three types of snack foods: tortilla chips,...

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$20,595

Indirect labor51,040

Factory electricity5,820

Indirect materials12,089

Selling expenses28,654

Administrative expenses16,118

Total costs$134,316

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 6,000 0.15

Potato chips 5,700 0.10

Pretzels 2,100 0.12

Total 13,800

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 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 Overhead

Tortilla chips$$

Potato chips

Pretzels

Total $

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ekkarill92 answered 1 year ago

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