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Lillich, Incorporated, manufactures and sells two products: Product U6 and Product R5. Data concerning the expected production of each product and the expected total direct

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Lillich, Incorporated, 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: Expected Production 730 1,090 Direct Labor- Hours per Unit 9.3 6.3 Total Direct Labor. Hours 6,789 6,867 13,656 Product 16 Product R5 Total direct labor-hours The direct labor rate is $27.40 per DLH. The direct materials cost per unit for each product is given below. Direct Materials Cost per Unit $ 250.2e $ 167.60 Product 16 Product R5 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity Activity Cost Pools Labor-related Production orders Order size Activity Measures DLHS orders MHS Estimated Expected Activity Overhead Cost Product 16 U6 Product R5 $ 202,638 6,789 6,867 71,840 1,250 1,150 1,019,608 6,388 6,682 $ 1,292,086 Total 13,656 2,400 12,900 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 Us under traditional costing is greater than its unit product under activity-based costing by $344.82. O The unit product cost of Product Us under traditional costing is less than its unit product cost under activity-based costing by $344.82. O The unit product cost of Product Us under traditional costing is greater than Its unit product under activity-based costing by $9.99. O The unit product cost of Product U6 under traditional costing is less than its unit product cost under activity-based costing by $9.98

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