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  3. wess company has limited capacity and can produce

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

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Accounting

Wess Company has limited capacity and can produce either its standard product or its deluxe product. Additional information follows. Per Unit Standard Deluxe Selling price $72 $110 Direct materials 36 41 Direct labor 26 31 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 $53 for the deluxe model. Which model should the company produce? Hint: Compute product cost per unit and compare that

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