manufacturing costs per wheel rim that they computed in $2025$ using activity$-$based costing.

View the $2025$ manufacturing costs per wheel rim.

In addition to the unit manufacturing overhead costs, the following data are expected for the company's standard and deluxe models for $2026$ :

View the $2026$ expected information.

Because of limited machine hour capacity, Emery can produce either $2,000$ standard rims or $2,000$ deluxe rims.

Read the requirements.

$2025$ Manufacturing Costs per Wheel

Rim

Requirement $1.$ If Easton Company's managers rely on the ABC unit cost data computed in $2025,$ which model will they produce? Car

administrative expenses for this calculation.$)$

Use the ABC unit cost data to compute the gross profit per unit for each model.

Requirements

If Easton Company's managers rely on the ABC unit cost data computed in $2025,$ which

model will they produce? Carry each cost to the nearest cent. $($Ignore selling and

administrative expenses for this calculation.$)$

$2026$ Expected Information

If the managers rely on the single plantwide overhead allocation rate cost data, which

model will they produce?

Which course of action will yield more income for Emery Company?