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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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: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
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
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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