Several years after reengineering its production process, King Corporation hired a new controller, Barb Joe. She developed an ABC system very similar to the one used by King's chief rival. Part of the reason Joe developed the ABC system was because King'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, 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 Data Table Requirement 1. Compute the gross profit per wheel if managers rely on the ABC unit cost data. (Enter amou Begin by computing the total manufacturing cost per wheel for each wheel model Manufacturing Overhead Costs per Unit Standard Deluxe Requirements 300.00 S ABC costs Plantwide overhead rate The following data are budgeted for the company's Standard 486.00 $340.60 S 445.40 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 and Deluxe models for next year: data. Standard Deluxe 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 Sales price per wheel Direct materials per wheel Direct labor per wheel $460.00$660.00 0.00$ 46.50 51.50 warning signs that the company's old direct-labor-based allocation system was broken? 45.70 $ PrintDone PrintDone