Several years after reengineering its production process, KingKing Corporation hired a new controller, Denise FrenchDenise French. She developed an ABC system very similar to the one used by KingKing's chief rival. Part of the reason FrenchFrench developed the ABC system was because KingKing'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, KingKing had used a plantwide overhead rate based on direct labor hours that was developed years ago.

Several years after reengineering 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 cld system. Before adopting the new ABC system, King had used a plantwide overnead rate based on dre oped years ago. (Click production pracess, King Corporation hired a new controller, Denise French. She developed an ABC system very similar to the one used King's chief rival. Part of the reason French developed the ABC overhead co Icon to view t d budgete Read the requirements. Requirement 1. Compute the gross profit per wheel if managers rely n the ABC unit cost data, (Enter amounts to two decimal places." Begin computing the total manufacturing cost per wheel for each wheel model. King Corporation Data Table Requirements Total cost per unit using ABC data Standard Deluxe 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 Which product ine is ore p to Manufacturing Overhead Costs per Unit Deluxe Standard ABC costs S 300.00 S 486.00 ompany Total manufacturing cost the cost-benefit test? Were there any warning signs that the company's old direct-labor-based allocation system was broken? Plantwide overhead rate. . . .S 340.60 $ 445.40 The following data are budgeted f and Deluxe models for next year: the company's Standard Print Done Standard Deluxe 480.00 $ Sales price per wheel 660.00 Direct materials per wheel 34.00 $ 47.50 Direct labor per wheel 45.00 $ 51.00