Single plantwide factory overhead rate
Krispy Treats Snack Food 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 | $15,967 | ||
| Indirect labor | 39,569 | ||
| Factory electricity | 4,512 | ||
| Indirect materials | 9,372 | ||
| Selling expenses | 22,214 | ||
| Administrative expenses | 12,496 | ||
| Total costs | $104,130 | ||
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 | 6,600 | 0.10 | ||||||
| Potato chips | 1,500 | 0.12 | ||||||
| Pretzels | 3,300 | 0.15 | ||||||
| Total | 11,400 | |||||||
If required, round all per-case answers to nearest cent.
a. Determine the single plantwide factory overhead rate
$_______
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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