Asked by
Vanessa Reyes
on Oct 11, 2024
Verified
Eliezrie, Inc., manufactures and sells two products: Product G8 and Product O0.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: 
The direct labor rate is $22.10 per DLH.The direct materials cost per unit for each product is given below: 
The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: 
Which of the following statements concerning the unit product cost of Product G8 is true?
A) The unit product cost of Product G8 under traditional costing is less than its unit product cost under activity-based costing by $227.80.
B) The unit product cost of Product G8 under traditional costing is less than its unit product cost under activity-based costing by $347.88.
C) The unit product cost of Product G8 under traditional costing is greater than its unit product under activity-based costing by $347.88.
D) The unit product cost of Product G8 under traditional costing is greater than its unit product under activity-based costing by $227.80.
Activity-Based Costing
A method in cost accounting that assigns costs to products and services based on the activities involved in their production or delivery.
- Scrutinize and delineate the divergences and convergences between traditional costing systems and Activity-Based Costing in pricing products.
- Calculate the per-unit cost utilizing both traditional and activity-based costing strategies.
Verified Answer
LW
Learning Objectives
- Scrutinize and delineate the divergences and convergences between traditional costing systems and Activity-Based Costing in pricing products.
- Calculate the per-unit cost utilizing both traditional and activity-based costing strategies.