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Faz, line., manufactures and sells two products Product XO and Product W7. Data concerning the expected production of each product and the expected total direct

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Faz, line., manufactures and sells two products Product XO and Product W7. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below. Expected Direct Labor- Total Direct Production Bours Per Unit Labor-Hours Product XO 1,000 5,000 Product W7 520 3 1.560 Total direct labor-hours 6,560 5 The direct labor rate is $3160 per DLH. The direct materials cost per unit is $156.50 for Product XO and $138 for Product W7 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 Poolm Measuren Cont Product xo Product W7 Total Labor-related $284,078 5,000 1,560 5,560 Production orders orders 20,148 620 1.440 Order Bize 247,094 4, 120 4,220 8,340 $551,320 DLHS 820 MH Help Which of the following statements concerning the unit product cost of Product W7 is true? (Round your intermediate calculations to 2 decimal places. Save & Edt Multiple Choice The unit product cost of Product W7 under traditional conting is greater than its unit product cost under activity-based costing by $140.30 The unit product cost of Product W7 under traditional conting is less than itu unit product cost under activity-based costing by $4912 The unit product cost of Product W7 under traditionat costing is greater than its unit product cost under active based costing by $48:13 The unit product cost of Product W7 under traditional costing is less than its unit product cost under activity based costing by $140.30

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