If you got 5.65 as the answer, it is probably close enough to 5.67 (options given). Which answer is correct? It looks like it would either be the 2nd answer or the last answer.

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 400 800 Direct Labor-Hours Per Unit 4 Product W2 Product P8 Total direct labor-hours Total Direct Labor-Hours 1,600 1,600 3,200 2 The direct labor rate is $49.10 per DLH. The direct materials cost per unit is $215.60 for Product W2 and $152.30 for Product P8. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Expected Activity Activity Cost Pools Labor-related Production orders Order size Activity Measures DLHS orders MHS Estimated Overhead Cost $230,576 19,738 261,686 $512,000 Product W2 1,600 400 4,000 Product P8 1,600 500 3,800 Total 3,200 900 7,800 Which of the following statements concerning the unit product cost of Product W2 is true? (Round your intermediate calculations to 2 decimal places.) The unit product cost of Product W2 under traditional costing is greater than its unit product cost under activity- based costing by $320.00. The unit product cost of Product W2 under traditional costing is less than its unit product cost under activity- based costing by $5.67. The unit product cost of Product W2 under traditional costing is less than its unit product cost under activity- based costing by $320.00. The unit product cost of Product W2 under traditional costing is greater than its unit product cost under activity- based costing by $5.67