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(1) What is the gross profit per widget (per unit) using the current cost system? (4 points) standard deluxe total price $83.00 $225.00 DM $18.75
(1) What is the gross profit per widget (per unit) using the current cost system? (4 points) standard deluxe total price $83.00 $225.00 DM $18.75 $42.60 DL $10.00 $13.00 OH gross profit gross margin (2) The president has asked you to do an ABC study to determine of the current accounting system understates the gross margin on standard widgets. You find the following information about the OH costs in an ABC context. Complete the template below showing the full manufacturing cost per widget under ABC. (6 points) cost category cost cost driver production schedulin $194,000 # production runs facility lease $288,000 # square feet maintenance $201,000 # machine hours total $683,000 cost driver quantity cost category standard deluxe production schedulin 40 110 facility lease 3,300 6,200 Iproduction schedulin 40 110 facility lease 3,300 6,200 maintenance 2,850 1,965 total 6,190 8,275 standard deluxe total price $83.00 $225.00 DM $18.75 $42.60 DL $10.00 $13.00 production scheduling OH facility lease OH machine maintenance OH gross profit gross margin (3) What will be the overall gross margin (both product lines) if the number of production runs for the deluxe widgets is changed to 75? (2 points) points gross margin
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