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old system. Before adopting the new ABC system, Burke 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.) 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.) Now compute the gross profit per wheel for each wheel model if the managers rely on the plantwide allocation cost data. (Enter amounts to two decimal places.) stem. Before adopting the new ABC system, Burke 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.) Data table Man Ifart Irinn Nverhead C.ncts nor I Init. it cost data. (Enter amounts to two decimal places.) old system. Before adopting the new ABC system, Burke 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.) 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. Now compute the gross profit per wheel for each wheel model. Requirement 3 . Which product lihe is more profitable for the company? Using the new ABC system, the standard model is allocation rate. ABC systems have manufacture (and support) products. the deluxe model. Activity-based costing data generally are cost categories (activities), each with its own allocation base. ABC cost assignments cost data generated by a plantwide overhead represent the cost of resources consumed to Requirement 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? The ABC system is likely to pass the cost-benefit test because Burke Corporation manufactures The old cost system appears "broken" because profits have been declining even though the compar old system. Before adopting the new ABC system, Burke 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.) 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. Now compute the gross profit per wheel for each wheel model. Requirement 3 . Which product lihe is more profitable for the company? Using the new ABC system, the standard model is allocation rate. ABC systems have manufacture (and support) products. the deluxe model. Activity-based costing data generally are cost categories (activities), each with its own allocation base. ABC cost assignments cost data generated by a plantwide overhead represent the cost of resources consumed to Requirement 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? The ABC system is likely to pass the cost-benefit test because Burke Corporation manufactures The old cost system appears "broken" because profits have been declining even though the compar old system. Before adopting the new ABC system, Burke 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.) 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.) Now compute the gross profit per wheel for each wheel model if the managers rely on the plantwide allocation cost data. (Enter amounts to two decimal places.)

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