Financial and Managerial Accounting: E26-3 Krispy Treats Snack Food Company manufactures

Financial and Managerial Accounting 
Ex26-3 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 12,900 
Indirect labor 32,150 
Factory electricity 3,500 
Indirect materials 6,650 
Selling expenses 18,000 
Administrative expenses 9,600 
Total Costs $82,800 

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) Process Hours per Case 
Tortilla chips 2,500 0.12 300 
Potato chips 4,400 0.10 440 
Pretzels 1,200 0.15 180 
Total 8,100 920 

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.
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