MC

A) The unit product cost of Product W7 under the traditional costing is less than its unit product cost under activity-based costing by $49.13.

B) The unit product cost of Product W7 under the traditional costing is less than its unit product cost under activity-based costing by $140.3.

C)The unit product cost of Product W7 under the traditional costing is greater than its unit product cost under activity-based costing by $49.13

D)The unit product cost of Product W7 under the traditional costing is greater than its unit product cost under activity-based costing by $140.3.

Faz, Incorporated, 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 Production 1,000 520 Direct Labor- Hours Per Unit 5 3 Product X0 Product W7 Total direct labor-hours Total Direct Labor-Hours 5,000 1,560 6,560 The direct labor rate is $31.60 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: Activity Measures Activity Cost Pools Labor-related Production orders Order size DLHS orders Estimated Overhead Cost $ 284,078 20,148 247,094 $ 551,320 Expected Activity Product XO Product W7 Total 5,000 1,560 6,560 620 820 1,440 4,120 4,220 8,340 MHS Which of the following statements concerning the unit product cost of Product W7 is true? (Round your intermediate calculations to 2 decimal places.)