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TB MC Qu. 4-68 Eliezrie, Inc., manufactures and ... Eliezrie, Inc., manufactures and sells two products: Product G8 and Product OO. Data concerning the expected
TB MC Qu. 4-68 Eliezrie, Inc., manufactures and ... Eliezrie, Inc., manufactures and sells two products: Product G8 and Product OO. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below: Direct Labor- Expected Hours Per Production Unit 5.7 370 2.7 Total Direct Labor- Hours 4.389 999 770 Product GB Product 00 Total direct labor-hours 5.388 The direct labor rate is $22.80 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit $120.10 $120.50 Product GB Product 00 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Pools Labor-related Machine setups Order size Activity Measures DLHS setups Estimated Expected Activity Overhead Cost Product G8 Product 00 Total $ 59,055 4,389 999 5,388 57,890 750 635 1,385 369,008 5,150 5,800 10,950 $485,953 Which of the following statements concerning the unit product cost of Product GS is true? (Round your intermediate calculations to 2 decimal places.) Multiple Choice 0 The unit product cost of Product GB under traditional costing is less than its unit product cost under activity-based costing by $185.50 0 C) The unit product cost of Product G8 under traditional costing is greater than its unit product cost under activity-based costing by $185.50. 0 The unit product cost of Product GB under traditional costing is less than its unit product cost under activity based costing by $305.58. 0 The unit product cost of Product GB under traditional costing is greater than its unit product cost under activity-based costing by $305.58
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