a. Calculate the machine utilization rate for each machine each month and explain which of the machine is the bottleneck/limiting factor b. Using the current system of marginal costing and contribution analysis, calculate the profit maximizing monthly output of the three products.

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Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit.  Overhead expenses depend upon the nature of the business operations.