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Problem 15-46 Student Name:
Class:
Super Sounds, Inc.
Computations
1. Budgeted overhead costs:
Department I Department II
Variable overhead * *
Fixed overhead * *
Total overhead * *
Total budgeted overhead for both
departments *
Total expected direct-labor hours
for both departments *
Predetermined overhead rate
per direct-labor hour *
2. Price with absorption manufacturing cost plus
Standard Deluxe
Total cost * *
Markup * *
Price * *
3. Departmental overhead rates:
Department I Department II
Budgeted overhead * *
Budgeted direct-labor hours * *
Predetermined overhead rate * *
4. Absorption cost of each speaker:
Standard Deluxe
Direct material * *
Direct labor * *
Manufacturing overhead:
Department I * *
Department II * *
Total cost * *
5. Price using new absorption cost plus
Standard Deluxe
Total cost * *
Markup * *
Price * *
6. Should Super Sounds, Inc. use plantwide or departmental
overhead rates? Explain your answer.
Problem 15-46 Student Name:
Class:
Super Sounds, Inc.
Computations
1. Budgeted overhead costs:
Department I Department II
Variable overhead 450,000$ 225,000$
2. Price with absorption manufacturing cost plus
Standard Deluxe
3. Departmental overhead rates:
Department I Department II
4. Absorption cost of each speaker:
Standard Deluxe
Direct material 240$ 390$
5. Price using new absorption cost plus
Standard Deluxe
Total cost 582.00$ 768.00$
6. Should Super Sounds, Inc. use plantwide or departmental
overhead rates? Explain your answer.
Instructor
McGraw-Hill/Irwin
The management of Super Sounds, Inc. should use department overhead
rates. The overhead cost structures in the two production departments
