o Several year shereengineering its production process, ppy Corphired a new controllier, Janeth She developed an ABC systems were used by Zippy's chief rival Centre part of the reason Smuth developed the ABC system was that Zippy's profits had been dediming even though the company had a product we proud that had appeared most probable under the old system Before adopting the new ABC system, Zippy had used a plantede overhead based on red bow was developed years ago Click the icon to view the overhead costs and budgeted data) Beata Requirement 1. Compute the grous profit per wheel managers rely on the ABC unit cost data Begin by computing the total costs Data Table Zippy Total cost per unit using ABC data Standard Deluxe Manufacturing Overhead Costs per Unit Standard Dalama ABC costs 3 277005 453.90 290055 44088 Planwide overhead rate Total manufacturing cool The following data are budgeted for the company's standard and Delos models for next year Now compute the gross profit Standard Deluxe Zippy 450 DO 5 540.00 Sale price per wel Gross profit per unit using ABC data Direct materials per wheel 3400 Standard Deluxe 4550 5400 Duct labour per who Print Done Gross profit Requirement 2. Compute the gross profit per wheel if the managers rely on the plantwide allocation costat Begin by computing the total manufacturing costs. Zippy Total cost per unit using plantwide overhead rate Deluxe Standard Total manufacturing cost Now compute the gross profit per wheel it the managers rely on the plantwide allocation cost data Zippy Gross profit per unit using plantwide overhead rate Standard Deluxe Gross pro Requirement 3. Which product line is more profitable for Zippy? The standard model is the deluxe model Activity-based costing data generally are cost data generated by a planwide overhead allocation then contine in the natursten