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:

	Expected Production	Direct Labor-Hours Per Unit	Total Direct Labor-Hours
Product G8	790	5.9	4,661
Product O0	390	2.9	1,131
Total direct labor-hours			5,792

The direct labor rate is $23.00 per DLH. The direct materials cost per unit for each product is given below:

	Direct Materials Cost per Unit
Product G8	$122.10
Product O0	$122.50

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 G8	Product O0	Total
Labor-related	DLHs	$	60,055	4,661	1,131	5,792
Machine setups	setups		58,890	850	645	1,495
Order size	MHs		370,008	5,250	6,000	11,250
		$	488,953

Which of the following statements concerning the unit product cost of Product G8 is true? (Round your intermediate calculations to 2 decimal places.)

• a) The unit product cost of Product G8 under traditional costing is less than its unit product cost under activity-based costing by $175.94.

• b) The unit product cost of Product G8 under traditional costing is less than its unit product cost under activity-based costing by $296.02.

• c) The unit product cost of Product G8 under traditional costing is greater than its unit product cost under activity-based costing by $296.02.

• d) The unit product cost of Product G8 under traditional costing is greater than its unit product cost under activity-based costing by $175.94.