Several years after reengineering its production process, Zeke Corporation hired a new controller, Rachael Johnson. She developed an ABC system very similar to the one used by Zeke's chief rival. Part of the reason Johnson developed the ABC system was because Zeke'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, Zeke 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 wheel if 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. Zeke Corporation Total cost per unit using ABC data Standard Deluxe Total manufacturing cost Now compute the gross profit per wheel for each wheel model. Zeke Corporation Gross profit per unit using ABC data Standard Deluxe Gross profit Requirement 2. Compute the gross profit per wheel if the managers rely on the plantwide allocation cost data. Begin by computing the total manufacturing costs. (Enter amounts to two decimal places.) Zeke Corporation Total cost per unit using plantwide overhead rate Standard Deluxe Total manufacturing cost Now compute the gross profit per wheel for each wheel model if the managers rely on the plantwide allocation cost data. (Enter amounts two decimal places.) Zeke Corporation Gross profit per unit using plantwide overhead rate Gross profit Standard Deluxe Choose from any list or enter any number in the input fields and then continue to the next question Data Table Requirements 1. Compute the gross profit per wheel if managers rely on the ABC unit cost data. Manufacturing Overhead Costs per Unit: Standard Deluxe 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? ABC costs $ $ 300.00 $ 486.00 340.60 $ 445.40 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? Plantwide overhead rate. The following data are budgeted for the company's Standard and Deluxe models for next year: Standard Deluxe Sales price per wheel ... S Direct materials per wheel... Direct labor per wheel 470.00 $ 600.00 31.50 $ 48.25 45.10 $ 52.00 Print Done Print Done