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Lillich, Incorporated, manufactures and sells two products Product U6 and Product R5. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below Product U6 Product RS Product U6 7,296 Product RS 7,491 Total direct labor-hours 14,787 The direct labor rate is $27.70 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit $ 250.50 $167.90 Activity Cost Pools Labor-related Production orders Order size Direct Total Labor- Direct. Labor- Hours Expected Hours Production Per Unit 760 1,135 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity Expected Activity Multiple Choice Activity Measures DLHS orders MHS 9.6 6.6 Estimated Overhead Cost $ 202,138 73,340 1,021,108 1,296,586 $ Product U6 Product R5 7,296 1,400 6,600 7,491 1,300 6,900 Total 14,787 2,700 13,500 Which of the following statements concerning the unit product cost of Product US is true? (Round your intermediate calculations to 2 decimal places.) The unit product cost of Product U6 under traditional costing is greater than its unit product under activity-based costing by $338.18. The unit product cost of Product US under traditional costing is less than its unit product cost under activity-based costing by $338.18 The unit product cost of Product US under tradisional costing is greater than its unit product under activity-based costing by $3.59 The unit product cost of Product US under traditional costing is less than its unit product cost under activity-based casting by $3.59

Lillich, Incorporated, manufactures and sells two products Product U6 and Product R5. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below Product U6 Product RS Product U6 7,296 Product RS 7,491 Total direct labor-hours 14,787 The direct labor rate is $27.70 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit $ 250.50 $167.90 Activity Cost Pools Labor-related Production orders Order size Direct Total Labor- Direct. Labor- Hours Expected Hours Production Per Unit 760 1,135 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity Expected Activity Multiple Choice Activity Measures DLHS orders MHS 9.6 6.6 Estimated Overhead Cost $ 202,138 73,340 1,021,108 1,296,586 $ Product U6 Product R5 7,296 1,400 6,600 7,491 1,300 6,900 Total 14,787 2,700 13,500 Which of the following statements concerning the unit product cost of Product US is true? (Round your intermediate calculations to 2 decimal places.) The unit product cost of Product U6 under traditional costing is greater than its unit product under activity-based costing by $338.18. The unit product cost of Product US under traditional costing is less than its unit product cost under activity-based costing by $338.18 The unit product cost of Product US under tradisional costing is greater than its unit product under activity-based costing by $3.59 The unit product cost of Product US under traditional costing is less than its unit product cost under activity-based casting by $3.59

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ashvin

Lillich, Incorporated, manufactures and sells two products Product U6 and Product R5. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below Product U6 Product R5 Product U6 7,296 Product RS 7,491 Total direct labor-hours 14,787 The direct labor rate is $2770 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit $ 250.50 $167.90 Activity Cost Pools Labor-related Production orders Order size Direct Total Labor- Direct Hours Labor- Hours Expected Production Per Unit 760 1,135 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity Expected Activity Multiple Choice Activity Measures DLHS orders MHS 9.6 6.6 Estimated Overhead Cost $ 202,138 73,340 Product U6 Product R5 7,296 1,400 1,021,108 6,600 1,296,586 $ 7,491 1,300 6,900 Total 14,787 2,700 13,500 Which of the following statements concerning the unit product cost of Product Us is true? (Round your intermediate calculations to 2 decimal places.) The unit product cost of Product U6 under traditional costing is greater than its unit product under activity-based costing by $338.18. The unit product cost of Product US under traditional costing is less than its unit product cost under activity-based costing by $338.18 The unit product cost of Product US under tradisional costing is greater than its unit product under activity-based costing by $3.59 The unit product cost of Product US under tradisional costing is less than its unit product cost under activity-based costing by $3.59
Transcribed Image Text:Lillich, Incorporated, manufactures and sells two products Product U6 and Product R5. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below Product U6 Product R5 Product U6 7,296 Product RS 7,491 Total direct labor-hours 14,787 The direct labor rate is $2770 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit $ 250.50 $167.90 Activity Cost Pools Labor-related Production orders Order size Direct Total Labor- Direct Hours Labor- Hours Expected Production Per Unit 760 1,135 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity Expected Activity Multiple Choice Activity Measures DLHS orders MHS 9.6 6.6 Estimated Overhead Cost $ 202,138 73,340 Product U6 Product R5 7,296 1,400 1,021,108 6,600 1,296,586 $ 7,491 1,300 6,900 Total 14,787 2,700 13,500 Which of the following statements concerning the unit product cost of Product Us is true? (Round your intermediate calculations to 2 decimal places.) The unit product cost of Product U6 under traditional costing is greater than its unit product under activity-based costing by $338.18. The unit product cost of Product US under traditional costing is less than its unit product cost under activity-based costing by $338.18 The unit product cost of Product US under tradisional costing is greater than its unit product under activity-based costing by $3.59 The unit product cost of Product US under tradisional costing is less than its unit product cost under activity-based costing by $3.59
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