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Sivak, Inc., manufactures and sells two products: Product X4 and Product C5. Data concerning the expected production of each product and the expected total direct
Sivak, Inc., manufactures and sells two products: Product X4 and Product C5. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Direct Labor- Total Direct Production Hours Per Unit Labor-Hours Product X4 Product C5 Total direct labor-hours 1,000 800 8.0 11.0 8,000 8,800 16,800 The direct labor rate is $25.10 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit $283.10 $109.30 Product X4 Product c5 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Overhead Activity Cost Pools Measures Cost Product x4 Product C5 Tota 8,000 400 8,800 600 3,200 16,800 1,000 6,300 Labor-related DLHs $ 728,112 Hachine setupssetups order size 87,800 243,243 MHS 3,100 $1,059,155 Which of the following statements concerning the unit product cost of Product X4 is true? (Round your intermediate calculations to 2 decimal places) Multiple Choice The unit product cost of Product X4 under traditional costing is greater than its unit product cost under activity-based costing by $2.79. The unit product cost of Product X4 under traditional costing is less than its unit product cost under activity-based costing by $2.79. The unit product cost of Product X4 under traditional costing is less than its unit product cost under activity-based costing by $189.12. The unit product cost of Product X4 under traditional costing is greater than its unit product cost under activity-based costing by $
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