Requirement 1. Compute the gross profit per wheel if managers rely on the ABC unit cost data. (Enter amounts to two decimal places.) Begin by computing the total manufacturing cost per Wheel for each wheel model. Kane Corporation Total cost per unit using ABC data Standard Deluxe Total manufacturing cost Several years after reengineering its production process, Kane Corporation hind a new controller Jane Smith. She developed an ABC system very similar to the one used by Kane' che il Partheneveked the ABC wat becaute Kane's profits had been dedining even though the company had shined its product toward the product that had appared most profitable under the old system. Before doing the new ABC system. Kane had used a plante overhead wie bosed on direct labor hours that was developed years ago In to view the overhead costs and budget data) Read peats - X 1 Data Table Manufacturing Overhead Costs per Unit: Standard Deluxe ABC costs.. $ 258.50 $ 431.50 Plantwide overhead rate ..... $ 310.50 $ 379.50 The following data are budgeted for the company's Standard and Deluxe models for next year: Standard Deluxe 480.00 $ 650.00 Sales price per wheel ........ $ Direct materials per wheel $ Direct labor per wheel. ....... $ $ 31.50 $ 47.25 ... 45.20 $ 51.00 Print Done Requirements 1. Compute the gross profit per wheel if managers rely on the ABC unit cost data. 2. Compute the gross profit per wheel if the managers rely on the plantwide allocation cost data. 3. Which product line is more profitable for the company? 4. Why might the controller have expected ABC to pass the cost-benefit test? Were there any warning signs that the company's old direct-labor-based allocation system was broken? Print Done