Weiskopf, Inc

question 107

Multiple Choice

Weiskopf, Inc., manufactures and sells two products: Product E6 and Product J2.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 $18.10 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 J2 is true?

• A)The unit product cost of Product J2 under traditional costing is less than its unit product cost under activity-based costing by $101.07.
• B)The unit product cost of Product J2 under traditional costing is greater than its unit product under activity-based costing by $101.07.
• C)The unit product cost of Product J2 under traditional costing is greater than its unit product under activity-based costing by $42.54.
• D)The unit product cost of Product J2 under traditional costing is less than its unit product cost under activity-based costing by $42.54.

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Definitions:

Cerebral Lobes

Divisions of the brain's cerebrum that are responsible for different functions; namely the frontal, parietal, temporal, and occipital lobes.

Simple Reflex

A basic, automatic physiological response to a specific stimulus, involving a simple neural path.

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, which coordinates and controls body activities.

Synaptic Vesicles

Membrane-bound sacs located within axon terminals, responsible for storing neurotransmitters that are released into the synaptic gap during neurotransmission.