Data table More info Market research shows that for the deluxe rim to provide a reasonable profit, Edgar will have to meet a target manufacturing cost of 504.00 per rim. A value engineering study by Edgar's employees suggests that modifications to the finishing process could cut finishing cost from $50.00 to $40.00 per hour and reduce the finishing direct labor hours per deluxe rim from 4.5 hours to 4.0 hours. Direct materials would remain unchanged at $51.00 per rim, as would direct labor at $54.00 per rim. The materials handling, machine setup, and insertion of parts activity costs also would remain the same. Data table In 2025, Edgar's managers used the same indirect manufacturing costs per wheel rim that they computed in 2024 using activity-based costing. In addition to the unit indirect manufacturing costs, the following data are expected for the company's standard and deluxe models for 2025