Single plantwide factory overhead rate Krispy Treats Snack Food Company manufact

Question

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 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:

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                                                 $                                                     $

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

Explanation / Answer

a. Total processing hours =6600*.1 +1500*.12+3300*.15 =1335 hours

single plantwide factory overhead rate =104,130/1335 =$78 per hr

b Tortilla chips   

Potato Chips

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