Emery Company manufactures wheel rims. The company produces two wheel rim modes: standard and deluxe....
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Emery Company manufactures wheel rims. The company produces two wheel rim modes: standard and deluxe. For 2019, Emery's managers have decided to use the same indirect manufacturing costa cer wheel rim that they computed in 2018 using activity-based costing. B (Click the icon to view the 2016 indirect manufacturing costs per wiccl ini.) In addition to the unit incirect manufacturing coata, the following data are expected for the company's standard and deluxe models for 2019 Click the icon to view the expocled information) Because of limited machine hour capacily, Emery care produce either 2,000 standard rims or 2.000 deluxe rirrs. Read requirements Requirement 1. if Emery's managers rely on the ABC unit cosi data xmputed in 2015, which model will they produce? Carry each cost to the nearest cent. lgnore selling and administrative exexenses for this calculation) Use the ABC unit cost data to compute the gross profit per unit for each model. ABC Data Gross Profits Standard Deluxe Sales price Direct materials Direct labor Indirect manufacturing costs Gross profit per unit X - Data table Data table Indirect Manufacturing Cost Per Unit Standard Deluxe Standard Deluxe Sales price 500.00 $ 640.00 ABC costs $ 337.60 $ 437.60 Direct materials 34.00 50.00 Single-rate costs $ 310.08 $ 465.12 Direct labor 47.00 54.00 Print Done Print Done
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