Reference no: EM133184942

Question - 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	$7,684
Indirect labor	19,043
Factory electricity	2,172
Indirect materials	4,509
Selling expenses	10,691
Administrative expenses	6,013
Total costs	$50,112

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	3,300	0.12
Potato chips	1,200	0.15
Pretzels	1,200	0.10
Total	5,700

If required, round all per-case answers to the nearest cent.

a. Determine the single plantwide factory overhead rate.

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.