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Several years after reengineering its production process, Zeke Corporation hired a new controller, Alice Brown. She developed an ABC system very similar to the one used by Zeke's chief rival. Part of the reason Brown developed the ABC d shifted its product mix toward the product that had appeared most profitable under the old system - X sed on direct labor hours that was developed years ago. Data table (Click the icon to view the overhead costs and Read the requirements. Manufacturing Overhead Costs per Unit: Standard ABC costs. $ 258.50 $ Deluxe 431.50 Requirement 1. Compute the gross profit per whe Begin by computing the total manufacturing cost pe Plantwide overhead rate...... $ 310.50 $ 379.50 The following data are budgeted for the company's Standard and Deluxe models for next year: Deluxe Zeke Corporation Total cost per unit using ABC Standard 620.00 Standard Sales price per wheel .... $ 460.00 $ Direct materials per wheel .... $ $ 34.50 $ Direct labor per wheel ........ $ 45.90 S $ 46.75 Direct labor $ 45 54.50 Direct materials 34 Manufacturing overhead 258 $ 338 Total manufacturing cost Print Done Now compute the gross profit per Wheel for each w Zeke Corporatio Gross profit per unit using ABC data Several years after reengineering its production process, Zeke Corporation hired a new controller, Alice Brown. She developed an ABC system very similar to the one used by Zeke's chief rival. Part of the reason Brown developed the ABC system was because Zeke'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, Zeke had used a plantwide overhead rate based on direct labor hours that was developed years ago. B Click the icon to view the overhead costs and budgeted data.) Read the requirements O Requirement 1. Compute the gross profit per wheel if managers rely on ABC unit cost data. (Enter amounts to two decimal places.) Begin by computing the total manufacturing cost per wheel for each wheel model. Zeke Corporation Total cost per unit using ABC data Standard Deluxe 54.50 Direct labor $ 45.90 $ Direct materials 46.75 34.50 258.50 Manufacturing overhead 431.50 338.90$ 532.75 Total manufacturing cost Now compute the gross profit per Wheel for each wheel model. Zeke Corporation Gross profit per unit using ABC data Several years after reengineering its production process, Zeke Corporation hired a new controller, Alice Brown. She developed an ABC system very similar to the one used by Zeke's chief rival. Part of the reason Brown developed the ABC system was because Zeke'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, Zeke had used a plantwide overhead rate based on direct labor hours that was developed years ago (Click the icon to view the overhead costs and budgeted data.) Read the requirements Now compute the gross profit per wheel for each wheel model. Zeke Corporation Gross profit per unit using ABC data Standard Deluxe Sales price $ 620.00 460.00 $ 338.90 Total manufacturing costs 532.75 $ 121.10 $ 87.25 Gross profit Requirement 2. Compute the gross profit per wheel if the managers rely on the plantwide allocation cost data. Begin by computing the total manufacturing costs. (Enter amounts to two decimal places.) Zeke Corporation Total cost per unit using plantwide overhead rate Standard Deluxe Zeke Corporation Total cost per unit using plantwide overhead rate Standard Deluxe Total manufacturing cost Several years after reengineering its production process, Zippy Corporation hired a new controller, Christine Erickson. (Click the icon to view additional information.) For the upcoming year, Zippy's budgeted ABC manufacturing overhead allocation rates are as follows: B (Click the icon to view the additional data.) The number of parts is now a feasible allocation base because Zippy recently installed a plantwide computer system. Zippy produces two wheel models: Standard and Deluxe. Budgeted data for the upcoming year are as follows: (Click the icon to view the additional data.) Read the requirements - X - X Data table Data table Standard Deluxe Activity Cost Allocation Rate Parts per wheel 6.0 8.0 Setups per 1,000 wheels.. 10.0 10.0 Activity Allocation Base Materials handling .... Number of parts Machine setup.... Number of setups Insertion of parts ..... Number of parts Finishing Finishing direct labor hours $3.50 per part $475.00 per setup $25.00 per part 3.0 3.8 $59.00 per hour Finishing direct labor hours per wheel.... 2.0 Total direct labor hours per wheel........ 2.9 The company's managers expect to produce 1,000 units of each model during the year. Print Done Print Done Several years after reengineering its production process, Zippy Corporation hired a new controller, Christine Erickson. i (Click the icon to view additional information.) For the upcoming year, Zippy's budgeted ABC manufacturing overhead allocation rates are as follows: B Click the icon to view the additional data.) The number of parts is now a feasible allocation base because Zippy recently installed a plantwide computer system. Zippy produces two wheel models: Standard and Deluxe. Budgeted data for the upcoming year are as follows: (Click the icon to view the additional data.) Read the requirements D Requirement 1. Compute the total budgeted manufacturing overhead cost for the upcoming year. (Enter the rates to two decimal places.) Zippy Corporation Total Budgeted Indirect Manufacturing Costs Budgeted Quantity of Activity Cost Cost Allocation Base Allocation Rate Total Budgeted Activity Indirect Cost Materials handling Machine setups Insertion of parts Finishing Total budgeted indirect cost