Reference no: EM132690596

Problem - Single plantwide factory overhead rate - Krispy Treats Snack Food 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 $12,900

Indirect labor 32,150

Factory electricity 3,500

Indirect materials 6,650

Selling expenses 18,000

Administrative expenses 9,600

Total costs $82,800

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	2,500	0.12
Potato Chips	4,400	0.10
Pretzels	1,200	0.15
Total	8,100

Required -

a. Determine the single plantwide factory overhead rate.

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.