Blend margerine, peanut butter and confectioner's sugar. Crush cereal slightly in a plastic bag.

Add cereal to peanut butter mixture and mix well. Roll mixture into 3/4 inch balls. Chill for one hour.

Melt chocolate slowly in top of double boiler. Stir well. With a dipping fork, dip each ball into the chocolate to coat. Place on wax paper to cool. Makes 7-8 dozen.