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g Enabled: Quiz 2 - Chapters 4 and 6 i XA Paused Updat Saved Help Save & Exit Submit Eliezrie, Incorporated, manufactures and sells two
g Enabled: Quiz 2 - Chapters 4 and 6 i XA Paused Updat Saved Help Save & Exit Submit Eliezrie, Incorporated, manufactures and sells two products: Product G8 and Product OO. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Direct Total Labor- Direct Expected Hours Per Labor- Production Product G8 Unit Hours 730 5. 3 Product 00 3, 869 330 2 . 3 759 Total direct labor-hours 4, 628 The direct labor rate is $22.40 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit Product G8 $ 116 . 10 Product 00 $ 116 .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 Overhead Cost Product G8 Product 00 Total Activity Cost Pools Measures 759 Labor-related DLHS $ 57, 055 3 , 869 4, 628 55, 890 550 615 1 , 165 Machine setups setups 10 , 350 Order size MHS 367, 008 4, 950 5 , 400 $ 479, 953 Q Q 1 Help Save & Exit Submit ures Cost Product G8 Product 00 Total Labor-related DLHS $ 57, 055 3,869 759 4, 628 Machine setups setups 55 , 890 550 615 1, 165 Order size MHS 367 , 008 4,950 5 , 400 10, 350 $ 479, 953 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 The unit product cost of Product G8 under traditional costing is greater than its unit product under activity-based costing by $207.72. The unit product cost of Product G8 under traditional costing is less than its unit product cost under activity-based costing $327.80. O The unit product cost of Product G8 under traditional costing is less than its unit product cost under activity-based costing by $207.72. O The unit product cost of Product G8 under traditional costing is greater than its unit product under activity-based costing by $327.80. O Q 7 of 10 Next > Graw Hill MacBook
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