DE25-4 Consider Chemtech's original cost system on pages 1022-1023. Suppose Chemtech allocates manufacturing overhead at 225% of
Question:
DE25-4 Consider Chemtech's original cost system on pages 1022-1023. Suppose Chemtech allocates manufacturing overhead at 225% of direct labor cost, instead of 200% of direct labor cost. 1. Compute the gross profit per pound for aldehyde and for PH. 2. Compute the total overhead assigned to all the aldehyde and to all the PH. 3. Did the new manufacturing overhead rate change the ratio of total overhead allocated to aldehyde versus PH?
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