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 $15,249 Indirect labor 37,791 Factory electricity 4,310 Indirect materials 8,950 Selling expenses 21,216 Administrative expenses 11,934 Total costs $99,450 Factory overhead is allocated to the
3-2
Single Plantwide Factory
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 |
$15,249 | ||
| Indirect labor | 37,791 | ||
| Factory electricity | 4,310 | ||
| Indirect materials | 8,950 | ||
| Selling expenses | 21,216 | ||
| Administrative expenses | 11,934 | ||
| Total costs | $99,450 |
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 | 3,300 | 0.10 | ||||||
| Potato chips | 1,500 | 0.12 | ||||||
| Pretzels | 5,100 | 0.15 | ||||||
| Total | 9,900 |
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
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 | $fill in the blank 2 | $fill in the blank 3 |
| Potato chips | fill in the blank 4 | fill in the blank 5 |
| Pretzels | fill in the blank 6 | fill in the blank 7 |
| Total | $fill in the blank 8 |
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