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Doeren, Inc., manufactures and sells two products Product H2 and Product A8 Data concerning the expected production of each product and the expected total direct

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Doeren, Inc., manufactures and sells two products Product H2 and Product A8 Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Direct Expeted Labor- Production Hours Per Unit 200 800 8.0 Total Direct Labor Hours 7.0 Product H2 Product AB Total direct labor-hours 1,400 6,400 7,800 The direct labor rate is $15.10 per DLH. The direct materials cost per unit is $145.80 for Product H2 and $261.90 for Product . The company is considering adopting an activity based costing system with the following activity cost pools, activity measures, and expected activity Activity Cost Pools Labor related Production orders General factory Activity Measures DLHS orders MHS Estimated Expected Activity Overhead Cost Product H2 Product AB $ 83,148 1,400 6,400 18,970 400 300 817191 5,000 5,100 S 919,309 Total 7800 700 10.100 Which of the following statements concerning the unit product cost of Product AB is true? (Round your intermediate calculations to 2 decimal places.) Which of the following statements concerning the unit product cost of Product AB is true? (Round your intermediate calculations to 2 decimal places.) Select one: O a. The unit product cost of Product A8 under traditional costing is greater than its unit product cost under activity- based costing by $331.64 Ob. The unit product cost of Product AB under traditional costing is less than its unit product cost under activity-based costing by $331,64 Oc: The unit product cost of Product A8 under traditional costing is less than its unit product cost under activity-based costing by $1,540.33 Od The unit product cost of Product AB under traditional costing is greater than its unit product cost under activity based costing by $1.540.33

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