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

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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 Deluxe $60 $90 35 25 30 6220 Required: 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. Plantwide OH rate Standard OH Deluxe OH per Unit $15 per Unit $20 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 Deluxe $60 $90 35 25 30 6220 Required: 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. Plantwide OH rate Standard OH Deluxe OH per Unit $15 per Unit $20

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Standard Product Selling Price 60 Direct Materials 30 Direct Labor 20 Ov... View the full answer