E4-37B (slmilar to) Question Help Several years after reengineering its production process, Burke Corporation hired a new controller Denise French. She developed an ABC system very similar to the one used by Burke's chief rival. Part of the reason French developed the ABC system was because Burke's profits had been declining even though the company had shifted its product mix toward the product that had appeared most profitable under the old system. Before adopting the new ABC system, Burke had used a plantwide overhead rate based on direct labor hours that was developed years ago EEB (Click the icon to view the overhead costs and budgeted data.) Read the requirements. Requirement 1. Compute the gross profit per wheel if managers rely on the ABC unit cost data. (Enter amounts to two decimal places.) Begin by computing the total manufacturing cost per wheel for each wheel model. Burke Corporation Total cost per unit using ABC data Standard Deluxe e Choose from any list or enter any number in the input fields and then click Check Answer 5 remaining parts Clear All Check Ar nch. Sh nch dev ad shift pting the veloped he icon Data Table en thou er the ect lab Manufacturing Overhead Costs per Unit Standard Deluxe quireme ABC costs 300.00 486.00 $340.60 $445.40 Plantwide overhead rate nt 1. C al pla The following data are budgeted for the company's Standard mputing (Ent and Deluxe models for next year: Standard Deluxe Sales price per w Direct materials per wheel... Direct labor per wheel $490.00 $660.00 $33.00 $48.25 45.80 $ 52.50 Print Done er m any -Hench. She developed an ABC system very similar to the one used by Burke's chief rival. Part on French developed the ABC system was because Burke's profits had been declining even thoug pany had shifted its product mix toward the product that had appeared most prof Requirements 1. Compute the gross profit per wheel if managers rely on the ABC unit cost data 2. Compute the gross profit per wheel if the managers rely on the plantwide allocation cost data 3. Which product line is more profitable for the company? 4. 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? Print Done se from any list or enter any number in the input fields and then click Check Answer Clear All Check Answe maining Requirement 1. Compute the gross profit per wheel if managers rely on the ABC unit cost data. (Enter amounts to two decimal places.) Begin by computing the total manufacturing cost per wheel for each wheel model. Burke Corporation Total cost per unit using ABC data Standard Deluxe Choose from any list or enter any number in the input fields and then click Check Answer. 5 parts remaining Clear All Check Answer AR ) , 7:32 Read the requirements Burke Corporation Total cost per unit using ABC data Standard Deluxe Total manufacturing cost Choose from any list or enter any number in the input fields and then click Check 5 parts remaining Clear All Che
