10 16 St. Lawrence Company is considering the adoption of an activity-based costing (ABC) system because the managers suspect that their traditional costing system distorts the product costs.This company produces and sells two products Generic and HiEnd. Their traditional costing system uses direct labor hours (DLHs) as the allocation base for manufacturing overhead cost. The production managers decided that major activities are Machine setups, Special Processing, and General factory and determined the costs for each activity. They also identified how many sctups, MHs, and DLHs for each product requires Product Price HiEnd S 230 150 $72.00 $44.00 10,000 80,000 20.00 The wage rate per hour is The c Cost Driver or Activity Estimated OH cost Activity Cost Pool Machine setup Special processing General factory # of setups Machine hours Diroet-labor hours Total $462,000 550,000 75,000 Generic HEnd Machine hours DLH 8,000 80,000 20 12,000 20,000 20 100 Compared with the unit prodact cost calted by the ABC system, what is the distortion Gdifference) created by the traditional costing system foe HiEnd Product? A. Under the traditional costing system, the product is overcosted by B. Under the traditional costing system, the product is undercosted by71.30 per unit. C. Under the traditional costing system, the product is overcosted by D. Under the traditional costing system, the product is undercosted by 43.56 per unit. S 71.30 per unit. s 43.56 per unit. E. None of the above