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
$12,944
Indirect labor
32,080
Factory electricity
3,658
Indirect materials
7.598
Selling expenses
18,010
Administrative expenses
Total costs
$84,420
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 Processing Hours
(Cases)
Per Case
Tortilla chips
0.15
Potato chips
2,100
Pretzels
3,000
10,130
5,700
0.12
0.10
Total
10,800
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
Per-Case
Factory Overhead Factory Overhead
Tortilla chips
Potato chips
Pretzels
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Answers: 3
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Single Plantwide Factory Overhead Rate
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