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	750	5.5	4,125
Product O0	350	2.5	875
Total direct labor-hours			5,000

The direct labor rate is $22.60 per DLH. The direct materials cost per unit for each product is given below:

	Direct Materials Cost per Unit
Product G8	$118.10
Product O0	$118.50

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	$	58,055	4,125	875	5,000
Machine setups	setups		56,890	650	625	1,275
Order size	MHs		368,008	5,050	5,600	10,650
		$	482,953

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

Multiple Choice

• The unit product cost of Product G8 under traditional costing is less than its unit product cost under activity-based costing by $196.09.

• The unit product cost of Product G8 under traditional costing is less than its unit product cost under activity-based costing by $316.17.

• The unit product cost of Product G8 under traditional costing is greater than its unit product cost under activity-based costing by $316.17.

• The unit product cost of Product G8 under traditional costing is greater than its unit product cost under activity-based costing by $196.09.