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

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 Required: 1. Using a single plantwide rate, the company computes averhead cast 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 Plantwide OH rate Standard OH Deluxe OH per Unit per Unit $15 $20 (Use cells A5 to C8 from the given information to complete this question. A negative gross profit should be indicated with a minus sign.) Direct materials Direct Labor Overhead Product Cost per unit Product cost per unit: Standard Deluxe Selling price Product cost Gross profit Gross profit per unit: Standard Deluxe Which model should the company produce? 2. Using activity-based costing, the company computes averhead 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. ABC rate Standard OH Deluxe OH per Unit per Unit $5 $40 (Use cells A5 to CB from the given information to complete this question. A negative gross profit should be indicated with a minus sign.) Direct materials Direct Labor Overhead Product Cost per unit Product cost per unit: Standard Deluxe Selling price Product cost Gross profit Gross profit per unit: Standard Deluxe Which model should the company produce