Several years the there is tio system was because Zeke's 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 whoel for each wheel model Zeke Corporation Total cost per unit using ABC data Standard Deluxe Total manufacturing cost Several years after reengineering its production process, Zeke Corporation hired a new controller, Georgia Taylor. She developed an ABC syster very similar to the one used by Zeke's chief rival. Part of the reason Taylor 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. X Data Table Requirement 1. Compute the gross profit per wheel if managers rely on the ABC Begin by computing the total manufacturing cost per whool for each wheel model Manufacturing Overhead Costs per Unit Zeko Corporation Standard Deluxe Total cost per unit using ABC data $ ABC costs ............. 240.50 S 413.50 Standard Deluxe Plantwide overhead rate ..... $ 283.40 S 370.60 The following data are budgeted for the company's Standard and Deluxe models for next year: Deluxe 620.00 Total manufacturing cost Standard Sales price per Wheel ........ $ 480.00 S Direct materials per wheel .... $ 31.00 S Direct labor per wheel........ $ 45.80 S 46.25 50.00 Print Print Done system was because Zeke's s posen er lettere in primis 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. Data Table Requirement 1. Compute the gross profit per wheel if managers poly on the Ard Begin by computing the total manufacturing cost per wheel for us X Requirements Zeke Corporation Total cost per unit using ABC data 1. Compute the gross profit per Wheel if managers rely on the ABC unit cost data. Standard Del 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? Total manufacturing cost Print Done Print Done