E4-28A (similar to) s Question Help Data Table Several years after reengineering its production process, Biltmore Corporation hired a new controller, Alice Brown. She developed an ABC system very similar to the one used system was because Biltmore's profits had been declining even though the company had shifted its product mix toward the product that had appeared most profitable under the 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. Manufacturing Overhead Costs per Unit: Standard Deluxe Requirement 1. Compute the gross profit per wheel if managers rely on the ABC unit cost data. (Enter amounts to two decimal places.) 184.00 $ 309.00 ABC costs $ Plantwide overhead rate ..... $ Begin by computing the total manufacturing cost per wheel for each wheel model. 221.00 $ 272.00 Biltmore Corporation The following data are budgeted for the company's Standard and Deluxe models for next year: Total cost per unit using ABC data Standard Deluxe Deluxe 620.00 Standard Sales price per wheel .... 480.00 $ Direct materials per wheel .... $ 34.50 $ Direct labor per wheel. $ 45.80 $ 46.00 Requirements 53.50 Total manufacturing cost Print Done 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. 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? Print Done Choose from any list or enter any number in the input fields and then click Check Answer. ? parts remaining Clear All Check