Score: 0 of 1 pt 5 of 5 (3 complete) HW Score: 60%, 3 of 5 pts E4-26A (similar to) Question Help Several years after reengineering its production process, Burke Corporation hired a new controller, Barb Joe. She developed an ABC system very similar to the one used by Burke's chief rival. Part of the reason Joe developed the ABC system was because Burke'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, Burke 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 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 Burke Corporation Total cost per unit using ABC data Standard Deluxe Total manufacturing cost Choose from any list or enter any number in the input fields and then click Check Answer. 5 parts remaining Clear All Check Answer Several years after reengineering its production process, Burke Corporation hired a new controller, Barb Joe. She developed an ABC system very similar to the one used by Burke's chief rival. Part of the reason Joe developed the ABC system was because Burke's profits had been declinina cuenthoush the comnany had shittadits.oroduct.mix toward the product that had appeared most profitable under the d hide overhead rate based on direct labor hours that w Data Table Click the icon to view Read the requirements Manufacturing Overhead Costs per Unit: Requirement 1. Compute Standard Deluxe er amounts to two decimal places.) ABC costs .$ 199.50 $ 372.50 Begin by computing the top Plantwide overhead rate 237.60 $ 334.40 The following data are budgeted for the company's Standard Total cd and Deluxe models for next year Standard Deluxe Sales price per wheel 450.00 $ Direct materials per wheel 33.50 $ 47.50 Direct labor per wheel. 45.20 $ 51.00 $ 610.00 $ $ Total manufacturing cost Print Done Choose from any list or enter any number in the input fields and then click Check Answer > E4-26A (similar to) Several years after reengineering its production process, Burke Corporation hired a new controller, Barb Joe. She developed an ABC system very similar to the one used by Burke's chief rival. Part of the reason Joe developed the ABC system was because Burke'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, Burke 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 Requirem Jo decimal places.) Begin by 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 Total manufacturing cost
