I need help solving this accounting assignment. I need help solving problem one (plant-wide overhead rate), then problem two. Problem two just asks for an explanation. A simple explanation would be helpful, then I can do the rest myself.

Youngstown Products: Youngstown Products, a supplier to the automotive industry, had seen its operating margins shrink below 20% as its OEM customers put continued pressure on pricing. Youngstown produced fours products in its plant and decided to eliminate products that no longer contributed positive margins. Details on the fours products are provided below: A Production Volume Units Selling Price Materials/Unit DLH/unit Total DLH Plant Overhead DL rate/hour B C D 10,000 8,000 6,000 4,000 $15.00 $4.00 0.24 2,400 $18.00 $5.00 0.18 1,440 $20.00 $6.00 0.12 720 $22.00 $7.00 0.08 320 Total 4,880 $122,000 $30/ hr Note: DLH is Direct Labor Hours. Plant overhead is total overhead, treated as a fixed cost. Youngstown has a traditional cost system. It calculates a plant-wide overhead rate by dividing total overhead costs by total direct labor hours. Assume, for the calculations to be made below, that plant overhead is a committed (fixed) cost during the year, but that direct labor is a variable cost. 1. Calculate the plant-wide overhead rate. Use this rate to assign overhead costs to products and calculate the profitability for the four products. You will need to create an excel spreadsheet or working paper to show your calculations and formulas. 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. 3. Drop any product that is unprofitable with the revised cost assignment. Repeat the process, eliminating any unprofitable products at each stage. 4. What is happening at Youngstown and why? How could this situation be avoided? Product Production Selling Price Materials/Unit Total DLH A B 10000 15 4 2400 C 8000 18 5 1440 6000 20 6 720 Requirement 1 Plant Overhead by Total Direct Labor hour =122000/4880 A Sales Less Direct material Cost Direct Plant Labor Cost Overhead Total Cost profitability B C 150000 144000 120000 40000 72000 60000 172000 -22000 40000 43200 36000 119200 24800 36000 21600 18000 75600 44400 Requirement 2 Product A is Unprofitable with a Loss of 22000 hence it is dropped revised plant- wide overhead rate is Product Production Selling Price Materials/Unit Total DLH B C 8000 18 5 1440 D 6000 20 6 720 4000 22 7 320 Plant Overhead by Total Direct Labor hour =122000/2480 B Sales Less Direct material Cost Direct Plant Labor Cost Overhead Total Cost profitability C D 144000 120000 88000 40000 43200 70839 154039 -10039 36000 21600 35419 93019 26981 28000 9600 15742 53342 34658 Requirement 3 Product B is Unprofitable with a Loss of 10039 hence it is dropped revised plant- wide overhead rate is Product Production Selling Price Materials/Unit Total DLH C D 6000 20 6 720 Total 4000 22 7 320 10000 1040 Plant Overhead by Total Direct Labor hour =122000/2480 C Sales Less Direct material Cost Direct Plant Labor Cost Overhead Total Cost profitability 117.31 D Total 120000 88000 208000 36000 21600 84462 142062 -22062 28000 9600 37538 75138 12862 64000 31200 122000 217200 -9200 Product C is Unprofitable with a Loss of 22062 hence it is dropped revised plant- wide overhead rate is Product Production Selling Price Materials/Unit Total DLH D Total 4000 22 7 320 10000 Plant Overhead by Total Direct Labor hour =122000/24 117.31 D Sales Less Direct material Cost Direct Plant Labor Cost Overhead Total Cost profitability 1040 Total 88000 88000 28000 9600 122000 159600 -71600 28000 9600 122000 159600 -71600 Requirement As Plant wide overhead cost is Fixed this cost will remain same even after any product is dropped . Best way to analysis the cost is Contribution if any product Gives Negative Contribution Drop that Product Situation Can be avoided by increasing the Production of Product With higher Contribution D 4000 22 7 320 Total 28000 4880 25.00 D Total 88000 502000 28000 9600 8000 45600 42400 ant- wide overhead rate is Total 18000 2480 49.19 Total 352000 104000 74400 122000 300400 51600 144000 146400 122000 412400 89600 ant- wide overhead rate is ant- wide overhead rate is y product is dropped . ntribution Drop that Product r Contribution