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	$30,429
Indirect labor	75,411
Factory electricity	8,600
Indirect materials	17,860
Selling expenses	42,336
Administrative expenses	23,814
	Total costs	$198,450

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			0.12
Potato chips		6,300			0.15
Pretzels		5,400			0.10
	Total		17,700

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 Overhead	Per-Case Factory Overhead
Tortilla chips
Potato chips
Pretzels
Total