Lillich, Inc., manufactures and sells two products Product U6 and Product R5. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Direct Labor- Hours Per Unit 9.2 5.2 Expected Production 720 1,100 Total Direct Labor. Hours 6,624 6,820 13,444 Product 16 Product RS Total direct labor-hours The direct labor rate is $27.30 per DLH. The direct materials cost per unit for each product is given below Direct Materials Cost per Unit $250.10 $167.50 Product UG Product R5 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity Expected Activity Activity Cost Pools Labor-related Production orders Order size Activity Measures DLHS orders Mos Estimated Overhead Cost $ 200,138 71,340 1,019,108 $1,290,586 Product U6 6,624 1,200 6,200 Product R5 6,820 1,180 6,500 Total 13,444 2,300 12,700 Which of the following statements concerning the unit product cost of Product U6 is true? (Round your intermediate calculations to 2 decimal places.) Multiple Choice The unit product cost of Product U6 under traditional costing is less than its unit product cost under activity-based costing by $346.10. The unit product cost of Product U6 under traditional costing is greater than its unit product cost under activity-based costing by $3.56. The unit product cost of Product U6 under traditional costing is less than its unit product cost under activity-based costing by $3.56. The unit product cost of Product U6 under traditional costing is greater than its unit product cost under activity-based costing by $346.10