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Litich, Inc, manufactures and sells two products: Product U6 and Product R5. Data concerning the expected production of each product and the expected total direct
Litich, Inc, manufactures and sells two products: Product U6 and Product R5. Data concerning the expected production of each product and the expected total direct tabor-hours (OLHs) required to produce that output appear below: The direct labor rate is $28.10 per OLH. The direct materials cost per unit for each product is given below: The company is considering adopting an activity-based costing system with the foliowing activity cost pools, activity measures, and expected activity: Which of the followina statements concerning the unit product cost of Product U6 is true? (Round vour intermediate calculations to 2 decimal Multiple Choice The unit product cost of Product U6 under tradtional costing is greater than is unit product cost under actwity-based costing by $33153 The unit product cost of Product U6 under traditional costing is less than its unit product cost under activity based costing by $331.53. The unit product cost of Product U6 under traditional costing is greater than its unit product cost under activity based costing by $5.24. The unit product cost of Product U6 under voditional costing is less than its unit product cost under activity based costing by $5.24
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