Fleurant, Inc., manufactures and sells two products: Product W2 and Product P8. 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 W2	500	6	3,000
Product P8	600	5	3,000
Total direct labor-hours			6,000

The direct labor rate is $47.10 per DLH. The direct materials cost per unit is $213.60 for Product W2 and $150.30 for Product P8.

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 W2	Product P8	Total
Labor-related	DLHs	$	228,576	3,000	3,000	6,000
Production orders	orders		19,538	500	480	980
Order size	MHs		261,886	3,980	3,780	7,760
		$	510,000

Which of the following statements concerning the unit product cost of Product W2 is true?

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