E25-4 Refer to Exercise 25-2. Controller Lindsay Bays is surprised by the increase in cost of the deluxe model under ABC. Market research shows that to remain a viable product while still providing a reasonable profit. Spokes will have to meet a target cost of $165 for the deluxe wheel. A value engineering study by Spokes' employees suggests that modifications to the finishing process could cut finishing cost from $70 to $60 per hour and reduce the finish- ang direct labor hours per deluxe wheel from 1 hour to 0.8 hour per wheel. Direct materials would remain unchanged at $25 per wheel, as would direct labor at $45 per wheel. The mate- mais handling, machine setups, and insertion of parts activity costs would remain the same as in Exercise 25-2. Would implementing the value engineering recommendation allow Spokes to achieve its target ABC-based cost for the deluxe wheel?