Question

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		$5,716
Indirect labor		14,166
Factory electricity		1,615
Indirect materials		3,355
Selling expenses		7,953
Administrative expenses		4,473
	Total costs	$37,278

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			1,500			0.10
Potato chips			1,200			0.15
Pretzels			2,700			0.12
	Total		5,400

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

Answer 1