Several years after reengineering its production process, King Corporation hired a new controller, Mandy Miler. She developed an ABC system very similar to the one used by King's chief rival. Part of the reason Miller developed the ABC system was because King's profits had been declining even though the company had sheds product loward the product that had appeared most profitable under the old system. Before adopting the new ABC system, King 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 wheet 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 King Corporation Total cost per unit using ABC data Standard Deluxe e stion Manufacturing Overhead Costs per Unit Standard Deluxe 199.50 $ 372.50 ABC costs. Plantwide overhead rate. 237.60 $ 334.40 The following data are budgeted for the company's Standard and Deluxe models for next year: Sales price per wheel Direct materials per wheel Standard 490.00 $ 34.00 $ Deluxe 670.00 46,00 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