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 $28,792
Indirect labor 71,355
Factory electricity 8,137
Indirect materials 16,900
Selling expenses 40,059
Administrative expenses 22,533
Total costs $187,776
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 7,200 0.15
Pretzels 6,300 0.12
Total 14,700
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 Overhead Per-Case
