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  3. ness company has limited capacity and can produce

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

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Accounting

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Ness 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 dehuxe model. Which model should the company produce? Hint: Compute product cost per unit and compare that with selling price to get gross pront per unit. (A negotive gross profit should be indicated with a minus sign.)

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