Accurso, Inc., manufactures and sells two products: Product J9 and Product S5. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:

	Expected Production	Direct Labor-Hours Per Unit	Total Direct Labor-Hours
Product J9	400	6.0	2,400
Product S5	600	3.0	1,800
Total direct labor-hours			4,200

The direct labor rate is $22.50 per DLH. The direct materials cost per unit for each product is given below:

	Direct Materials Cost per Unit
Product J9	$111.40
Product S5	$275.20

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

		Estimated	Expected Activity
Activity Cost Pools	Activity Measures	Overhead Cost	Product J9	Product S5	Total
Labor-related	DLHs	$121,548	2,400	1,800	4,200
Machine setups	setups	37,170	600	800	1,400
General factory	MHs	385,848	4,700	4,500	9,200
		$544,566

Which of the following statements concerning the unit product cost of Product S5 is true?

a) The unit product cost of Product S5 under traditional costing is greater than its unit product under activity-based costing by $269.49.

b) The unit product cost of Product S5 under traditional costing is less than its unit product cost under activity-based costing by $47.79.

c) The unit product cost of Product S5 under traditional costing is less than its unit product cost under activity-based costing by $269.49.

d) The unit product cost of Product S5 under traditional costing is greater than its unit product under activity-based costing by $47.79.