Easter Company manufactures wheel rims. The company produces two wheel rim models: standard and deluxe. For 2019, Easter's managers have decided to use the same indirect manufacturing costs per wheel rim that they computed in 2018 using activity-based costing. Click the icon to view the 2018 indirect manufacturing costs per wheel rim.) In addition to the unit indirect manufacturing costs, the following data are expected for the company's standard and deluxe models for 2019: (Click the icon to view the expected information.) Because of limited machine hour capacity, Easter can produce either 2,000 standard rims or 2,000 deluxe rims. Read the requirements. Requirement 1. If Easter's managers rely on the ABC unit cost data computed in 2018, which model will they produce? Carry each cost to the nearest cent. (Ignore selling and administrative expenses for this calculation.) Use the ABC unit cost data to compute the gross profit per unit for each model. Sales price Direct materials ABC Data Gross Profits Standard Deluxe Direct labor Indirect manufacturing costs Gross profit per unit Data Table Indirect Manufacturing Cost Per Unit Standard Deluxe ABC costs $ 292.80 $ 380.80 Single-rate costs $ 252.60 $ 421.00 Print Done I X el v i Data Table Sales price Direct materials Direct labor Standard Deluxe $ 800.00 $ 940.00 31.00 48.00 45.00 52.00 Print Done - X Easter's managers will produce 2000 units of the model to maximize income Requirement 2. If the managers rely on the single plantwide overhead allocation rate cost data, which model will they produce? Use the single plantwide allocation rate cost data to compute the gross profit per unit for each model. (Round amounts to the nearest cent, $X.XX) Single-Allocation-Base Data Gross Profits Sales price Direct materials Direct labor Indirect manufacturing costs Gross profit per unit Standard Deluxe 9 6 3 11 iRequirements 1. If Easter's managers rely on the ABC unit cost data computed in 2018, which model will they produce? Carry each cost to the nearest cent. (Ignore selling and administrative expenses for this calculation.) 2. If the managers rely on the single plantwide overhead allocation rate cost data, which model will they produce? 3. Which course of action will yield more income for Easter? Print Done