6 Wess Company has limited capacity and can produce either its standard product or its deluxe product. Additional information follows. Per Unit Selling price Direct materials Direct labor Standard $ 76 38 28 Deluxe $ 110 43 33 1. Using a single plantwide rate, the company computes overhead cost per unit of $16 for the standard model and $21 for the deluxe model. Which model should the company produce? Hint: Compute product cost per unit and compare that with selling price to get gross profit per unit. 2. Using activity-based costing, the company computes overhead cost per unit of $4 for the standard model and $47 for the deluxe model. Which model should the company produce? Hint: Compute product cost per unit and compare that with selling price per unit get gross profit per unit. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using a single plantwide rate, the company computes overhead cost per unit of $16 for the standard model and $21 for deluxe model. Which model should the company produce? Hint: Compute product cost per unit and compare that with s price to get gross profit per unit. (A negative gross profit should be indicated with a minus sign.) Product cost per unit: Direct materials Direct Labor Overhead Product Cost per unit Standard $ 38 $ 28 Deluxe $ 43 $ 33 Selling price Product cost Gross profit Gross profit per unit: Standard Deluxe Which model should the company produce? 6 Wess Company has limited capacity and can produce either its standard product or its deluxe product. Additional information follows. Per Unit Selling price Direct materials Direct labor Standard $ 76 38 28 Deluxe $ 110 43 33 1. Using a single plantwide rate, the company computes overhead cost per unit of $16 for the standard model and $21 for the deluxe model. Which model should the company produce? Hint: Compute product cost per unit and compare that with selling price to get gross profit per unit. 2. Using activity-based costing, the company computes overhead cost per unit of $4 for the standard model and $47 for the deluxe model. Which model should the company produce? Hint: Compute product cost per unit and compare that with selling price per unit to get gross profit per unit. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using activity-based costing, the company computes overhead cost per unit of $4 for the standard model and $47 for the model. Which model should the company produce? Hint: Compute product cost per unit and compare that with selling pri unit to get gross profit per unit. Product cost per unit: Direct materials Direct labor Overhead Product Cost per Unit $ 38 $ 28 Standard Deluxe $ 43 $ 33 Selling price Product cost Gross profit Gross profit per unit: Standard Deluxe Which model should the company produce?
