Wess Company has limited capacity and can produce either its standard product or its deluxe product. Additional information follows.

Per Unit	Standard	Deluxe
Selling price	$ 64	$ 98
Direct materials	32	37
Direct labor	22	27

1. Using a single plantwide rate, the company computes overhead cost per unit of $17 for the standard model and $22 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 $3 for the standard model and $46 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.