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O Fleurant, Incorporated, manufactures and sells two products: Product W2 and Product P8. Data concerning the expected production of each pre and the expected total
O Fleurant, Incorporated, manufactures and sells two products: Product W2 and Product P8. Data concerning the expected production of each pre and the expected total direct labor-hours (DLHS) required to produce that output appear below: 0:41:24 Product W2 Product P8 Total direct labor-hours Total Direct Labor-Hours 3,000 3,000 6,000 The direct labor rate is $46.10 per DLH. The direct materials cost per unit is $212.60 for Product W2 and $149.30 for Product P8. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected a Estimated Overhead Cost $ 227,576 Expected Activity Product W2 Product P8 19,438 262,986 $ 510,000 Activity Cost Pools Labor-related Production orders Order size Expected Production 500 600 Activity Measures DLHs orders MHS Direct Labor- Hours Per Unit 6 5 3,000 500 3,970 3,000 470 3,770 Total 6,000 970 7,740 Which of the following statements concerning the unit product cost of Product W2 is true? (Round your intermediate calculations to 2 decim places.)
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