# [SOLVED] Single Plantwide Factory Overhead Rate

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[SOLVED] Single Plantwide Factory Overhead Rate
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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 \$11,233 Indirect labor 27,839 Factory electricity 3,175 Indirect materials 6,593 Selling expenses 15,629 Administrative expenses 8,791 Total costs \$73,260

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 5,700 0.15 Potato chips 1,800 0.12 Pretzels 1,500 0.10 Total 9,000

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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