8 Machine setups Order size setups MHS Multiple Choice 62,890 374,008 $ 500,953 1,250 5,650 685 6,800 Which of the following statements concerning the unit product cost of Product G8 is true? (Round your intermediate calculations to 2 decimal places.) The unit product cost of Product GB under traditional costing is less than its unit product cost under activity-based costing by $145.01. 1,935 12,450 The unit product cost of Product GB under traditional costing is greater than its unit product under activity- based costing by $145.01. The unit product cost of Product G8 under traditional costing is greater than its unit product under activity- based costing by $265.09. The unit product cost of Product G8 under traditional costing is less than its unit product cost under activity based costing by $265.09 白 Ⓒ 100% O R1
8 Machine setups Order size setups MHS Multiple Choice 62,890 374,008 $ 500,953 1,250 5,650 685 6,800 Which of the following statements concerning the unit product cost of Product G8 is true? (Round your intermediate calculations to 2 decimal places.) The unit product cost of Product GB under traditional costing is less than its unit product cost under activity-based costing by $145.01. 1,935 12,450 The unit product cost of Product GB under traditional costing is greater than its unit product under activity- based costing by $145.01. The unit product cost of Product G8 under traditional costing is greater than its unit product under activity- based costing by $265.09. The unit product cost of Product G8 under traditional costing is less than its unit product cost under activity based costing by $265.09 白 Ⓒ 100% O R1
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:8
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.
Product G8
Product 00
Direct
Materials.
Cost per
Unit
$ 130.10
$ 130.50
Product G8
Product 00.
Total direct labor-hours
The direct labor rate is $23.80 per DLH. The direct materials cost per unit for each product is given below:
Activity Cost Pools
Labor-related
Machine setups
Order size
Expected Hours Per
Production Unit
870
6.7
470
3.7
Direct
Labor-
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
Mis
Total
Direct
Labor-
Estimated
Overhead
Cost
Hours
5,829
1,739
7,568
$ 64,055
62,890
374,008
$ 500,953
Expected Activity
Product G8 Product 00
5,829
1,739
1,250
685
5,650
6,800
Total
7,568
1,935
12,450
100%
e
EL
Transcribed Image Text:8
Machine setups
Order size
setups
MHS
Multiple Choice
62,890
374,008
$ 500,953
1,250
5,650
685
6,800
Which of the following statements concerning the unit product cost of Product G8 is true? (Round your intermediate
calculations to 2 decimal places.)
The unit product cost of Product GB under traditional costing is less than its unit product cost under
activity-based costing by $145.01.
1,935
12,450
The unit product cost of Product GB under traditional costing is greater than its unit product under activity-
based costing by $145.01.
The unit product cost of Product G8 under traditional costing is greater than its unit product under activity-
based costing by $265.09.
The unit product cost of Product G8 under traditional costing is less than its unit product cost under
activity-based costing by $265.09
Ⓒ
100%
O
EL
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