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Eliezrie, Inc., manufactures and sells two products Product G8 and Product 00. Data concerning the expected production of each product and the expected total direct

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Eliezrie, 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 Expected Production 870 Direct Labor-Hours Per Unit Total Direct Labor- Hours 5,829 1,739 7,568 6.7 3.7 470 Product G8 Product de Total direct labor-hours The direct labor rate is $23.80 per DLH. The direct materials per unit for each product is given below Direct Materials Cost per Unit $138.10 $130.50 Product G8 Product 00 search O RE The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity Expected Activity Activity Cost Pools Labor-related Machine setups Order size Estimated Activity Overhead Measures Cost DLHS $ 64,055 setups 62,890 MHS 374, 008 $589,953 Product G8 5,829 1,250 5,650 Product de 1,739 685 6,800 Total 7,568 1,935 12,450 Which of the following statements concerning the unit product cost of Product G8 is true? (Round your intermediate calculations to 2 decimal places.) Multiple Choice Prev 7 of 20 Next search O DHE The unit product cost of Product G8 under traditional costing is less than its unit product cost under activity- based costing by $145.01. The unit product cost of Product G8 under traditional costing is less than its unit product cost under activity- based costing by $265.09. The unit product cost of Product G8 under traditional costing is greater than its unit product cost under activity based costing by $265.09. The unit product cost of Product G8 under traditional costing is greater than its unit product cost under activity- based costing by $145.01.

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