what is the correct answer: eBook

Question Content Area

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$13,670Indirect labor33,879Factory electricity3,863Indirect materials8,024Selling expenses19,020Administrative expenses10,698Total costs$89,154

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 CaseTortilla chips1,5000.15Potato chips2,4000.12Pretzels6,3000.10Total10,200

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