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The unit product cost of Product G8 under traditional costing is greater than its unit product under activity based costing by $327.80 The unit product
The unit product cost of Product G8 under traditional costing is greater than its unit product under activity based costing by $327.80 The unit product cost of Product G8 under traditional costing is greater than its unit product under activity-based costing by $207.72 The unit product cost of Product G8 under traditional costing is less than its unit product cost under activity based costing by $20772 The unit product cost of Product G8 under traditional costing is less than its unit product cost under activity-based costing by $327.80 Eliezrie, 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: Direct Labor Expected Hours Production Per Unit 730 5.3 330 2.3 Total Direct Labor Hours 3,869 759 4.628 Product GB Product 00 Total direct labor-hours The direct labor rate is $22 40 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit $ 116.10 $ 116.50 Product 68 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 Activity Measures DLHS entine Estimated overhead Cost $ 57,055 Expected Activity Product G8 Product 00 Total 3,869 759 4.628 615 Machine Cune Con EEA 1 166 Product 68 Product 00 $ 116.10 $ 116.50 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 MHS Estimated Overhead Cost $ 57, 655 55, 890 367, 688 $ 479,953 Expected Activity Product G8 Product de Total 3,869 759 4,628 550 615 1,165 4,950 5,400 10, 350 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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