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Case number 15-48. Thank you for your help 6. Should Sounds Fine, Inc. use plantwide or departmental overhead rates? Explain your ans Cases Case 15-48

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6. Should Sounds Fine, Inc. use plantwide or departmental overhead rates? Explain your ans Cases Case 15-48 Gargantuan Industries is a multiproduct company with several manufacturing plants. The Boise Plan Priding in a Tight Market, manufactures and distributes two household cleaning and polishing compounds, standard and commer cial, under the Super Clean label. The forecasted operating results for the first six months of the currernt year, when 100,000 cases of each compound are expected to be manufactured and sold, are presented in Possible Plant Closing (LO 1,10) 2l. Contribution margi Standand: $350 the following statement SUPER CLEAN COMPOUNDS-BOISE PLANT Forecasted Results of Operations For the Six-Month Perlod Ending June 30 In Thousands) Salies Codt of goods sold Gross profit Standard Commercial Total $3,000 1.600 1.9003.500 $2,000 $5,000 100 $1.100 $1500 ariable Fuod Total selling and administative expenses 400 240 700 $1,100 600 $1,700 360 S 640 $1.060 $ (240) JKL x c B N M

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