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Compute the manufacturing overhead cost per wheel of each model using ABC. Compute the company's traditional plantwide overhead rate. Use this rate to determine the

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Compute the manufacturing overhead cost per wheel of each model using ABC. Compute the company's traditional plantwide overhead rate. Use this rate to determine the manufacturing overhead cost per wheel under the traditional system. Refer to your answers in E4-34B. In addition to the manufacturing overhead costs, the fol lowing data are budgeted for the company's Standard and Deluxe models for next year: Compute the gross profit per wheel if managers rely on the ABC unit cost data. Compute the gross profit per unit if the managers rely on the plantwide allocation cost data. Which product line is more profitable for the company? Why might the controller have expected ABC to pass the cost-benefit test? Were there any warning signs that the company's old direct-labor-based allocation system was broken

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