Several years after reengineering its production process, Biltmore Corporason hired a new controller, Christine Erickson. She developed an ABC system very similar to the one used by Biltmore's chief rival. Part of the reason Erickson developed the ABC system was because Bitore's profits had been declining even though the company had shifted its product toward the product that had appeared most profitable under the old system. Before adopting the new ABC system, Biltmore 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 proas profit per wheel managers rely on the ABC unit cost dela. (Enint aucunts to two decimal places) Begin by computing the total manufacturing cost per wheel for each wheel modul Data Table Biltmore Corporation Total cost per unit using ABC data Standard Deluxe Manufacturing Overhead Coolspor Unit Standard Deluxe ABC cost $ 253.00 410.00 Planwide overhead rate $ 273,00 5 300.00 The following data are budgeted for the company's standard Total manufacturing cost and Douxe models for next year Choose from any lot or enter any number in the input fields and then click Check An 2 Standard 3 470.00 5 $ 3100 $ $ 45305 Sales price per wheel Direct materials per wheel Direct labor per wheel Deluxe 630.00 48.00 53.50 5 parts k Answer remaining Requirements rin si 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? Sta Print Done