Single Plantwide Factory Overhead Rate Salty Sensations Snacks 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 $22,952   Indirect labor 56,881   Factory electricity 6,486   Indirect materials 13,473   Selling expenses 31,933   Administrative expenses 17,963     Total costs $149,688   Factory overhead is allocated to the three products on the basis of processing hours. The products had the following production budget and processing hours per case:   Budgeted Volume(Cases) Processing HoursPer Case Tortilla chips 2,100 0.12           Potato chips 6,000 0.15           Pretzels 3,600 0.10             Total 11,700               If required, round all per-case answers to the nearest cent. a.  Determine the single plantwide factory overhead rate.$ per processing hour b.  Use the 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.   TotalFactory Overhead Per-CaseFactory Overhead Tortilla chips $ $ Potato chips         Pretzels         Total  $

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Chapter1: Financial Statements And Business Decisions
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Single Plantwide Factory Overhead Rate

Salty Sensations Snacks 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 $22,952  
Indirect labor 56,881  
Factory electricity 6,486  
Indirect materials 13,473  
Selling expenses 31,933  
Administrative expenses 17,963  
  Total costs $149,688  

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 2,100 0.12          
Potato chips 6,000 0.15          
Pretzels 3,600 0.10          
  Total 11,700              

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 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.

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