Wess Company has limited capacity and can produce either its standard product or its deluxe product. Additional information follows. 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. 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 sellir price to get gross profit per unit. Note: A negative gross profit should be indicated with a minus sign. Wess Company has limited capacity and can produce either its standard product or its deluxe product. Additional information follows. 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. Using activity-based costing, the company computes overhead cost per unit of $5 for the standard model and $40 for the de model. Which model should the company produce? Hint: Compute product cost per unit and compare that with selling price unit to get gross profit per unit
