Which of the following statements concerning the unit product cost of Product S9 is true? (Round your intermediate calculations to 2 decimal places.) Multiple Choice The unit product cost of Product S9 under traditional costing is greater than its unit product cost under activity-based costing by $700.00 The unit product cost of Product S9 under traditional costing is greater than its unit product cost under activity-based costing by $70.34. The unit product cost of Product S9 under traditional costing is less than its unit product cost under activity-based costing by $70.34.
Which of the following statements concerning the unit product cost of Product S9 is true? (Round your intermediate calculations to 2 decimal places.) Multiple Choice The unit product cost of Product S9 under traditional costing is greater than its unit product cost under activity-based costing by $700.00 The unit product cost of Product S9 under traditional costing is greater than its unit product cost under activity-based costing by $70.34. The unit product cost of Product S9 under traditional costing is less than its unit product cost under activity-based costing by $70.34.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question

Transcribed Image Text:Which of the following statements concerning the unit product cost of Product S9 is true? (Round your intermediate calculations to 2 decimal places.)
Multiple Choice
$ 795,383
The unit product cost of Product S9 under traditional costing is greater than its unit product cost under activity-based costing by $700.00.
The unit product cost of Product S9 under traditional costing is greater than its unit product cost under activity-based costing by $70.34.
The unit product cost of Product S9 under traditional costing is less than its unit product cost under activity-based costing by $70.34.
The unit product cost of Product S9 under traditional costing
$
%
< Prev
less than its unit product cost under activity-based costing by $700.00.
17 of 20
&
7
Next >
8
#
O

Transcribed Image Text:Howden, Incorporated, manufactures and sells two products: Product P5 and Product S9. Data concerning the expected production of each product and
the expected total direct labor-hours (DLHS) required to produce that output appear below:
Product P5
Product S9
Activity Cost Pools
Labor-related
Saved
Machine setups
Order size
Direct
Labor-
Expected Hours Per
Production Unit
300
7.0
900
4.0
Product P5
Product S9
Total direct labor-hours
The direct labor rate is $25.70 per DLH. The direct materials cost per unit for each product is given below:
Direct
Materials
Cost per
Unit
$ 248.50
$ 294.80
Activity
Measures
DLHS
setups
MHS
Total
Direct
Labor-
The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
Expected Activity
Estimated
Overhead
Cost
$ 247,152
28,990
519,241
$ 795,383
Which of the following statements concerning the unit product cost of Product S9 is true? (Round your intermediate calculations to 2 decimal places.)
< Prev
Hours
2,100
3,600
5,700
Product P5 Product S9
2,100
3,600
600
700
4,900
5,200
17 of 201 #
Help Save & Exit Submit
Next >
Total
5,700
1,300
10,100
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