Chesser Corp. manufactures dog food and cat food. The following information is available for 2010 for Chesser Corp.
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Required:
a. Calculate the overhead rates for each of the overhead cost pools.
b. Calculate the total amount of overhead to assign to dog food and cat food.
c. Calculate the per-unit amount of overhead to assign to dog food and cat food. (Round to the nearest cent.)
d. Calculate profit per-unit for dog food and cat food.
e. Calculate profit as a percentage of selling price for dog food and cat food. Which product is more profitable?
f. Assume that Chesser applies overhead on the basis of direct material cost. Determine the (1) overhead cost per unit for dog food and cat food and (2) the profit as a percentage of selling price for dog food and cat food. Which product is more profitable?

Question

Chesser Corp. manufactures dog food and cat food. The following information is available for 2010 for Chesser Corp. 
‪  
Required:
a.	Calculate the overhead rates for each of the overhead cost pools.
b.	Calculate the total amount of overhead to assign to dog food and cat food.
c.	Calculate the per-unit amount of overhead to assign to dog food and cat food. (Round to the nearest cent.)
d.	Calculate profit per-unit for dog food and cat food.
e.	Calculate profit as a percentage of selling price for dog food and cat food. Which product is more profitable?
f.	Assume that Chesser applies overhead on the basis of direct material cost. Determine the (1) overhead cost per unit for dog food and cat food and (2) the profit as a percentage of selling price for dog food and cat food. Which product is more profitable?

Quizplus · Accepted Answer

The Answer of Chesser Corp. manufactures dog food and cat food. The following information is available for 2010 for Chesser Corp. 
‪  
Required:
a.	Calculate the overhead rates for each of the overhead cost pools.
b.	Calculate the total amount of overhead to assign to dog food and cat food.
c.	Calculate the per-unit amount of overhead to assign to dog food and cat food. (Round to the nearest cent.)
d.	Calculate profit per-unit for dog food and cat food.
e.	Calculate profit as a percentage of selling price for dog food and cat food. Which product is more profitable?
f.	Assume that Chesser applies overhead on the basis of direct material cost. Determine the (1) overhead cost per unit for dog food and cat food and (2) the profit as a percentage of selling price for dog food and cat food. Which product is more profitable?