Eason company manufactures wheel rims. The controller budgeted the following ABC allocation rates. Activity Material handing Machine setup Insertion of parts Finishing Allocation base Number of parts number of setups Number of parts Finishing DLH Allocation rate $3 per part $300 per setup $24 per parts S50 per hour The number of parts is now a feasible allocation base because Easton recently purchased bar coding technology. Eason produces two wheel rim models: standard and deluxe. Budgeted data for 2017 are as follows. Standard Deluxe Parts per rim Setups per 1,000 rims Finishing DLH per rim Total DLH per rim 15 2.5 15 The company's managers expect to produce 1,000 units of each model during the year, and the rate for direct labor is $20 per hour Compute the total budgeted indirect manufacturing overhead costs based on 1000 units production for each model. There are four activities that are identified to allocate costs. 1. Compute the ABC budgeted indirect manufacturing overhead costs allocated to each model based on the above 1000 units each production 2. 3. Prior to 2017 the Eason Company use a single allocation rate, based on direct labor hour (5,000 hours). Based on this signal allocation rate, calculate total indirect manufacturing overhead costs allocated to each model 4. Additional costs information is presented below. Based on all of costs information, compute costs to produce one rim for the models Standard and Deluxe. First compute, using the ABC costing method and second computer, using the single allocation rate Below is additional information about each product per rim. Sale price for Direct Material Direct Labor Questions: Standard $300 Standard S30 Standard $45 Deluxe $440 Deluxe $406 Deluxe $50 5. Based on the above information calclulate which products generates more profits per rim. Compute profits based on ABC and the single allocation rate