E25-3 Refer to Exercise 25-2. For 20X4, Spokes' managers have decided to use the same indirect manufacturing costs per wheel that they computed in 20X3. In addition to the unit indirect manufacturing costs, the following data are budgeted for the company's standard and deluxe models for 20X4: Standard Deluxe Sale price. $155.00 $215.00 Direct materials 15.00 25.00 Direct labor....... 30.00 45.00 Because of limited machine hour capacity, Spokes can produce either 2,000 standard wheels or 2,000 deluxe wheels. Required 1. If the managers rely on the ABC unit cost data computed in Exercise 25-2, which model will they produce? (All nonmanufacturing costs are the same for both models.) 2. If the managers rely on the single-allocation-base cost data, which model will they produce? 3. Which course of action will yield more income for Spokes?