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sEliezrie, Incorporated, manufactures and sells two products: Product G8 and Product 00. Data concerning the expected production of each product and the expected total direct
sEliezrie, Incorporated, manufactures and sells two products: Product G8 and Product 00. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below: Product G8 Product 00 Total direct labor-hours Product G8 Product 00 The direct labor rate is $22.10 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit $ 113.10 $ 113.50 Activity Cost Pools Labor-related Expected Production 700 300 Machine setups Order size Direct Labor- Hours Per Unit 5.0 2.0 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Measures DLHs setups MHS Total Direct Labor- Estimated Overhead Cost Hours. 3,500 600 4,100 $ 55,555 54,390 365,508 $ 475,453 Expected Activity Product 00 600 600 5,100 Product G8 3,500 400 4,800 Total 4,100 1,000 9,900 Which of the following statements concerning the unit product cost of Product G8 is true? (Round your intermediate calculations to 2 decimal places.)
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