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Eliezrie, Inc., manufactures and sells two products: Product G8 and Product O0. Data concerning the expected production of each product and the expected total direct

Eliezrie, Inc., manufactures and sells two products: Product G8 and Product O0. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:

Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours
Product G8 880 6.8 5,984
Product O0 480 3.8 1,824
Total direct labor-hours 7,808

The direct labor rate is $23.90 per DLH. The direct materials cost per unit for each product is given below:

Direct Materials Cost per Unit
Product G8 $131.10
Product O0 $131.50

The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:

Estimated Expected Activity
Activity Cost Pools Activity Measures Overhead Cost Product G8 Product O0 Total
Labor-related DLHs $ 64,555 5,984 1,824 7,808
Machine setups setups 63,390 1,300 690 1,990
Order size MHs 374,508 5,700 6,900 12,600
$ 502,453
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Ellezrie, Inc, manufactures and sells two products Product G8 and Product 00. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below: Direct Labor- Expected Hours Per Production Unit 880 480 3.8 Total Direct Labor- Hours 5,984 1,824 7,808 6.8 Product GB Product 00 Total direct labor-hours The direct labor rate is $23.90 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit $131.10 $131.50 Product GB Product 00 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Saved Help Save & E Direct Materials Cost per Unit $131.10 $131.50 Product GS Product 00 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity Estimated Expected Activity Activity overhead Activity Cost Pools Measures Cost Product GB Product 00 Total Labor-related DLHS $ 64,555 5,984 1,824 7,808 Machine metups setups 63,390 1300 690 1,990 Order size MHS 374,508 5,700 6,900 12,600 $502, 453 Which of the following statements concerning the unit product cost of Product G8 is true? (Round your intermediate calculations to 2 decimal place Multiple Choice The unit product cost of Product GB under traditional costing is less than its unit product cost under activity-based costing by $14179 The unit product cost of Product G8 under traditional conting is less than its unit product cost under activity-based conting by 5261.87 The unit product cost of Product G under traditional conting is greater than its unit product cost under activity based costing by $26187, The unit product cost of Products under traditional costing is greater than its unit product cost under activity based costing by $14179

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