HOw is Weapon DMG % calculated?

1. If I buy a weapon for my wizard that has 300 damage and +20% is that damage % calculated? Is it applied to the 300 Weapon damage or to the TOTAL character damage?

2. Generally speaking, does one get more damage with a high damage 2 handed weapon or 1 handed + magic source?
It's already calculated into the dps. Everything is done for you.

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