Drop any product that is unprofitable with the revised

Reference no: EM133552613

Question 1. Calculate the plant-wide overhead rate. Use this rate to assign overhead costs to products and calculate the profitability of the four products. The assignment spreadsheet provides a starting point for your calculations, with some data formulas already supplied.

Question 2. If any product is unprofitable with this cost assignment, drop this product from the mix. Recalculate the overhead rate based on the new total direct labor hours remaining in the plant. Apply the new overhead rate to the remaining products.

Question 3. Drop any product that is unprofitable with the revised cost assignment. Repeat the process, eliminating any unprofitable products at each stage

Reference no: EM133552613

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