Emery Company manufactures wheel rims. The company produces two wheel rim models: standard anddeluxe. For 2019, Emery's managers have decided to use the same indirect manufacturing costs per wheelrim that they computed in 2018 using activity-based costing.In addition to the unit indirect manufacturing costs, the following data are expected for the company'sstandard and deluxe models for 2019:E (Click the icon to view the expected information.)(Click the icon to view the 2018 indirect manufacturing costs per wheel rim.)Because of limited machine hour capacity, Emery can produce either 2,000 standard rims or 2,000 deluxerims.Read the requirements.Requirement 1. If Emery'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 thiscalculation.)Use the ABC unit cost data to compute the gross profit per unit for each model.Data TableData TableABC Data Gross ProfitsStandardDeluxeSales priceIndirect Manufacturing Cost Per UnitStandardDeluxeDirect materialsStandardDeluxeSales price$910.00 $ 1,000.00Direct laborABC costs403.60 $459.60Direct materials33.0046.00Indirect manufacturing costsSingle-rate costs$323.70 $539.50Direct labor48.0056.00Activate WindowsGo toPrintings Doneivate Windows.Enter any number in the edit fields and then continue to the next question.PrintDone - XData TableData TableEmery Company manufactures wheel rims. The company produces two wheel rim models:deluxe. For 2019, Emery's managers have decided to use the same indirect manufacturingrim that they computed in 2018 using activity-based costing.(Click the icon to view the 2018 indirect manufacturing costs per wheel rim.)StandardDeluxeIndirect Manufacturing Cost Per UnitSales price$910.00 $ 1,000.00StandardDeluxeDirect materials33.0046.00АВС costs$403.60 $459.60Direct materiaisDirect labor48.0056.00Single-rate costs$323.70 $539.50Direct laborIndirect manufacturing costsPrintDonePrintDoneGross profit per unitEmery's managers will produce 2000 units of themodel to maximize income.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 ProfitsActivate WindowsEnter any number in the edit fields and then continue to the next question.Go to Settings to activate Windows.

Cost: It refers to the expense made to produce output. It can direct, indirect, fixed, or variable.Requirement 1: Note: Emery’s managers will produce 2000 units of the standard model to maximize income.Requirement 2: Note: If they rely on the single Plant wide allocation rate cost data, Emery’s manager will produce the standard model to maximize the income.