Faz, Incorporated, manufactures and sells two products: Product X0 and Product W7. 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 X0	1,000	5.0	5,000
Product W7	400	2.0	800
Total direct labor-hours			5,800

The direct labor rate is $19.60 per DLH. The direct materials cost per unit is $144.50 for Product X0 and $126.00 for Product W7.

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

Activity Cost Pools	Activity Measures	Estimated Overhead Cost	Expected Activity
			Product X0	Product W7	Total
Labor-related	DLHs	$ 272,078	5,000	800	5,800
Production orders	orders	18,948	500	700	1,200
Order size	MHs	242,514	4,000	4,100	8,100
		$ 533,540

Which of the following statements concerning the unit product cost of Product W7 is true? (Round your intermediate calculations to 2 decimal places.)

Multiple Choice:

The unit product cost of Product W7 under traditional costing is greater than its unit product cost under activity-based costing by $244.36.

The unit product cost of Product W7 under traditional costing is less than its unit product cost under activity-based costing by $66.13.

The unit product cost of Product W7 under traditional costing is greater than its unit product cost under activity-based costing by $66.13.

The unit product cost of Product W7 under traditional costing is less than its unit product cost under activity-based costing by $244.36.