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

Using a single plantwide rate, the company computes overhead cost per unit of $$18$ for the standard model and $$23$ 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.

Using activity$-$based costing, the company computes overhead cost per unit of $$2$ for the standard model and $$49$ 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.

Using a single plantwide rate, the company computes overhead cost per unit of $$18$ for the standard model and $$23$ 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.$)$

Required $1$

Using activity$-$based costing, the company computes overhead cost per unit of $$2$ for the standard model and $$49$ 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.

Which model should the company produce?