MANAGERIAL ACCOUNTING-CUSTOM EBOOK>I<
MANAGERIAL ACCOUNTING-CUSTOM EBOOK>I<
12th Edition
ISBN: 9781307661217
Author: HILTON
Publisher: INTER MCG2
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Chapter 15, Problem 47P

1.

To determine

Show the way in which SF Incorporation derived its plantwide predetermined overhead rate of $10 per direct labor hour.

2.

To determine

Determine the price of each model stereo speaker, if the firm prices its product at its absorption manufacturing cost plus 15%.

3.

To determine

Determine the rates for Departments I and II for the coming year, if SF Incorporation uses departmental overhead rates.

4.

To determine

Determine the absorption cost for each model stereo speaker using the departmental overhead rates.

5.

To determine

Determine the new prices for each of the speaker model using the product costs determined in requirement (4), if management of the company is very particular with its policy of setting prices equal to the absorption cost plus 15%.

6.

To determine

Suggest whether SF Incorporation should use plantwide or departmental overhead rates.

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