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wess company has limited capacity and can produce either its standard product or its deluxe product. additional information follows. per unitstandarddeluxe selling price$ 78$ 109 direct materials3944 direct labor2934 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 $42 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.
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