Reference no: EM133103596

Problem - 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	$19,011
Indirect labor	47,114
Factory electricity	5,373
Indirect materials	11,158
Selling expenses	26,450
Administrative expenses	14,878
Total costs	$123,984

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	1,800	0.12
Potato chips	4,500	0.10
Pretzels	5,400	0.15
Total	11,700

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

Required -

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.