Wriston Manufacturing Corporation Operates Several Plants with Large Differences in Overhead

Short Answer

Wriston Manufacturing Corporation operates several plants with large differences in overhead rates. The Detroit plant has the highest overhead rate-more than twice the rate of the lowest overhead plant, Maysville. As a result, the corporation is considering closing down Detroit and transferring its production to a lower overhead facility such as Maysville.What will be the effect of transferring the entire production of Detroit to Maysville and why? (Assume capacity is not an issue)