- Data table Data table whi Standard Deluxe Indirect Manufacturing Cost Per Unit $ 500.00 $ 640.00 Standard Deluxe Sales price Direct materials Direct labor 34.00 50.00 ABC costs $ 308.00 $ 394.00 47.00 54.00 Single-rate costs 280.80 $ 421.20 Print Done Print Done Elkin Company manufactures wheel rims. The company produces two wheel rim models: standard and deluxe. For 2019, Elkin's managers have decided to use the same indirect manufacturing costs per wheel rim that they computed in 2018 using activity-based costing. (Click the icon to view the 2018 indirect manufacturing costs per wheel rim.) "" In addition to the unit indirect manufacturing costs, the following data are expected for the company's standard and deluxe models for 2019: (Click the icon to view the expected information.) Because of limited machine hour capacity, Elkin can produce either 2,000 standard rims or 2,000 deluxe rims. Read the requirements. Requirement 1. If Elkin's managers rely on the ABC unit cost data computed in 2018, which model will they produce? Carry each cost to the nearest cent. (Ignore selling and administrative expenses for this calculation.) Use the ABC unit da to compute the gross profit per for each model. ABC Data Gross Profits Standard Deluxe Sales price Direct materials Direct labor Indirect manufacturing costs Gross profit per unit Elkin's managers will produce 2000 units of the model to maximize income. Dorament 2 If the managere rely on the sinala plantwide verhead allocation rate moet data which model will they roduno2 Requirement 2. If the managers rely on the single plantwide overhead allocation rate cost data, which model will they produce? Use the single plantwide allocation rate cost data to compute the gross profit per unit for each model. (Round amounts to the nearest cent, $X.XX.) Single-Allocation-Base Data Gross Profits Standard Deluxe Sales price Direct materials Direct labor Indirect manufacturing costs Gross profit per unit If they rely on the single plantwide allocation rate cost data, Elkin's managers will produce the model. It will appear to maximize income. Requirement 3. Which course of action will yield more income for Elkin? Elkin will earn more income by producing the model. data are generally more accurate than data