Several years after reengineering its production process, Burke Corporation hired a new controller, Ashley Adams. She developed an ABC system very similar to the one used by Burke's chief rival Part of the reason Adams 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. EEl (Click the icon to view the overhead costs and budgeted data.) Read the requirements 184 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 259.90 $ 406.00 Total manufacturing 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 Now compute the gross profit per wheel for each wheel model warning signs that the company's old direct-labor-based allocation system was broken? Burke Corporation Gross profit per unit using ABC data Standard Deluxe Data Table Print Done Sales price Total manufacturing costs Gross profit Requirement 2. Compute the gross profit per wheel if the managers rely on the plantwide Begin by computing the total manufacturing costs. (Enter amounts to two decimal places.) 490,00 $ 259.90 230.10 $ 610.00 406.00 204.00 Manufacturing Overhead Costs per Unit ABC costs Plantwide overhead rate The following data are budgeted for the company's Standard Standard Deluxe S 184.00 $309.00 S 221.00 S 272.00 Burke Corporation Total cost per unit using plantwide overhead rate and Deluxe modals for next year Standard Deluxe Standar Deluxe Sales price por wheel Direct materials per wheel Direct labor per wheel $490.00$ 610.00 30.00 $ 4.50 5.90 S 50.50 Total manufacturing cost Print Done Choose from any list or enter any number in the input fields and then click Check An