Multiple Choice Question When a company has extensive product diversity and complex overhead, it is best to assign overhead using O activity-based costing O a single plantwide overhead rate O departmental overhead rates Need help? Review these concept resources. Read About the Concept

Come-Clean Corporation produces a variety of cleaning compounds and solutions for both industrial and household use While most of its products are processed independently, a few are related, such as the company's Grit 337 and its Sparkle siver polish. Grit 337 is a-coarse cleaning powder with many industrial uses. It costs $1.60 a pound to make, and it has a selling price of $3.40 a pound. A small portion of the annual production of Grit 337 is retained in the factory for further processing. It is combined with several other ingredients to form a paste that is marketed as Sparkle siver polish. The siver polish sells for $4.00 per jar. This further processing requires one-fourth pound of Grit 337 per jar of silver polish. The additional direct varlable costs involved in the processing of a jat of silver polish are: Overhead costs associated with processing the silver polish are: The production supervisor has no dubes other than to oversee production of the silver polish. The mixing equipment is speciaI purpose equipment acquired specifically to produce the sliver polish. It can produce up to 5.000 jars of polish per month. its resale value is negligible and it does not wear out through use. Advertising costs for the silver polish total $3,700 per month. Varlable selling costs assoclated with the siver polish are 5% of sales. Due to a recent decline in the demand for siver polish, the company is wondering whether its continued production is advisable. The sales manager feels that it would be more profitable to sell all of the Grit 337 as a cleaning powder Required: 1. How much incremental revenue does the company earn per jar of polish by further processing Grit 337 rather than seiling it as a cleaning powder? (Round your onswer to 2 decimal ploces.) 2. How much incremental contribution margin does the company earn per jar of poilsh by further processing Grit 337 rather than selling it as a cleaning powder? (Round your intermediate colculotions ond finol answer to 2 decimol ploces.) 3. How many jars of silver polish must be sold each month to exactly offset the avoidable fixed costs incurred to procluce and sell the polish? (Round your intermediate calculations to 2 decimal places.) 4. If the company sells 8,400 jars of polish, what is the financlal advantage (disadvantage) of choosing to further process Grit 337 rather than selling it as a cleaning powder? (Enter any "disodvontages" os o negotive value. Round your intermediote calculotions to 2 decimol places.) 5 . If the comparly sells 11,000 jars of polish, what is the financial advantage (disadvantage) of choosing to further process Grit 337 rather than selling is as a cleaning powder? (Enter ony "disodvantoges" os a negative value. Round your intermediate calculotions to 2 decimal ploces.)