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Welskopf, Inc., manufactures and sells two products Product E6 and Product 32. Data concerning the expected production of each product and the expected total direct

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Welskopf, Inc., manufactures and sells two products Product E6 and Product 32. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below ed Direct Labor- Hours Per Unit 5.0 7.0 Expected Production 600 900 Total Direct Labor- Hours 3,000 6,300 9,300 Product E6 Product J2 Total direct labor-hours The direct labor rate is $18.10 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit $176.50 $200.00 Product E6 Product J2 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 Product testing Order size Activity Measures DLHS tests MHS Estimated Expected Activity Overhead Cost Product E6 Product J2 Total $430,032 3,000 6,300 9,300 68,368 300 500 800 478,962 5,000 4,900 9,900 $977,362 Which of the following statements concerning the unit product cost of Product J2 is true? (Round your intermediate calculations to 2 decimal places.) d Multiple Choice The unit product cost of Product J2 under traditional costing is less than its unit product cost under activity-based costing by $10107 The unit product cost of Product J2 under traditional costing is greater than its unit product cost under activity based costing by $101.07. The unit product cost of Product J2 under traditional costing is greater than its unit product cost under activity-based costing by $42.54 The unit product cost of Product J2 under traditional costing is less than its unit product cost under activity-based costing by $42.54

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