9 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 $ 60 30 20 Deluxe $ 90 35 25 nts Skipped 1. Using a single plantwide rate, the company computes overhead cost per unit of $15 for the standard model and $20 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 $5 for the standard model and $40 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. eBook Print Complete this question by entering your answers in the tabs below. eferences Required 1 Required 2 Using a single plantwide rate, the company computes overhead cost per unit of $15 for the standard model and $20 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. (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 $ 30 $ 20 Deluxe $ 35 $ 25 Selling price Product cost Gross profit Gross profit per unit: Standard Deluxe Which model should the company produce? Required 1 Required 2 > 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 $ 60 30 20 Deluxe $ 90 35 25 1. Using a single plantwide rate, the company computes overhead cost per unit of $15 for the standard model and $20 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 $5 for the standard model and $40 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 $5 for the standard model and $40 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. Product cost per unit: Direct materials Direct labor Overhead Product Cost per Unit $ 30 $ Standard Deluxe 20 25 $ 35 $ Selling price Product cost Gross profit Gross profit per unit: Standard Deluxe Which model should the company produce?
