Midterm exam $(26$ Oct$)$

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$5$

Fleurant, Incorporated, manufactures and sells two products: Product W$2$ and Product P$8.$ Data concerning the expected production of each product and the expected total direct labor$-$hours $($DLHs$)$ required to produce that output appear below:

$4$ points

$01$:$17$:$28$

$\backslash$table$[[,\backslash$table$[[$Expected$],[$Production$]],\backslash$table$[[$Direct Labor$-],[$Hours Per Unit$]],$Total Direct$],[$Labor$-$Hours,,,$]]$

The direct labor rate is $$33\mathrm{.}10$ per DLH$.$ The direct materials cost per unit is $$199\mathrm{.}60$ for Product W$2$ and $$136\mathrm{.}30$ for Product P$8.$

The company is considering adopting an activity$-$based costing system with the following activity cost pools, activity measures, and expected activity:

$\backslash$table$[[,$Activity,Estimated,Expected Activity,$],[$Activity Cost Pools,Measures,Overhead Cost,Product W$2,$Product P$8,$Total,$],[$Labor$-$related,DLHs$,$$$214,576,,1,600,1,600,3,200],[$Production orders,orders,$18,138,,400,340,740],[$Order size,MHs$,240,886,,3,840,3,640,7,480],[,,$$$473,600,,,,]]$

Which of the following statements concerning the unit product cost of Product W$2$ is true?

Note: Round your intermediate calculations to $2$ decimal places.

Multiple Choice

The unit product cost of Product W$2$ under traditional costing is greater than its unit product under activity$-$based costing by $$9\mathrm{.}87.$

Midterm exam $(26$ Oct$)$ i

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$5$

$\backslash$table$[[$Activity Cost Pools,Measures,Overhead Cost,Product W$2,$Product P$8,$Total$],[$Labor$-$related,DLHs$,$$ $214,576,1,600,1,600,3,200],[$Production orders,orders,$18,138,400,340,740],[$Order size,MHs$,240,886,3,840,3,640,7,480],[,,$$ $473,600,,,]]$

$4$ points

$01$:$17$:$20$

Which of the following statements concerning the unit product cost of Product W$2$ is true?

Note: Round your intermediate calculations to $2$ decimal places.

Multiple Choice

The unit product cost of Product W$2$ under traditional costing is greater than its unit product under activity$-$based costing by $$9\mathrm{.}87.$

The unit product cost of Product W$2$ under traditional costing is less than its unit product cost under activity$-$based costing by $$296\mathrm{.}00.$

The unit product cost of Product W$2$ under traditional costing is less than its unit product cost under activity$-$based costing by $$9\mathrm{.}87.$

The unit product cost of Product W$2$ under traditional costing is greater than its unit product under activity$-$based costing by $$296\mathrm{.}00.$

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Midterm exam $(26$ Oct$)$

Help

Save & Exit

Submit

$5$

Fleurant, Incorporated, manufactures and sells two products: Product W$2$ and Product P$8.$ Data concerning the expected production of each product and the expected total direct labor$-$hours $($DLHs$)$ required to produce that output appear below:

$4$ points

$01$:$17$:$28$

$\backslash$table$[[,\backslash$table$[[$Expected$],[$Production$]],\backslash$table$[[$Direct Labor$-],[$Hours Per Unit$]],$Total Direct$],[$Labor$-$Hours,,,$]]$

The direct labor rate is $$33\mathrm{.}10$ per DLH$.$ The direct materials cost per unit is $$199\mathrm{.}60$ for Product W$2$ and $$136\mathrm{.}30$ for Product P$8.$

The company is considering adopting an activity$-$based costing system with the following activity cost pools, activity measures, and expected activity:

$\backslash$table$[[,$Activity,Estimated,Expected Activity,$],[$Activity Cost Pools,Measures,Overhead Cost,Product W$2,$Product P$8,$Total,$],[$Labor$-$related,DLHs$,$$$214,576,,1,600,1,600,3,200],[$Production orders,orders,$18,138,,400,340,740],[$Order size,MHs$,240,886,,3,840,3,640,7,480],[,,$$$473,600,,,,]]$

Which of the following statements concerning the unit product cost of Product W$2$ is true?

Note: Round your intermediate calculations to $2$ decimal places.

Multiple Choice

The unit product cost of Product W$2$ under traditional costing is greater than its unit product under activity$-$based costing by $$9\mathrm{.}87.$