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Litlich, Inc., 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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Litlich, 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 Expected Hours Per Product 16 Product RS Total direct labor-hours Production 790 1,160 Unit 9.9 6.9 Total Direct Labor Hours 7,821 8,004 15,825 The direct labor vote is $28.00 per DLH. The direct materials cost per unit for each product is given below Direct Materials Cost per Unit $250.80 $168.20 Product Product RS The company is considering adopting an activity based costing system with the following activity cost pools, activity measures and expected activity 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 MHS Estimated Overhead Cost $ 203,638 74,840 1,022,608 $1,301, 086 Product 16 7,821 1,550 6,900 Product RS 8,004 1,450 7,200 Total 15,825 3,000 14,100 Which of the following statements concerning the unit product cost of Product Us is true? (Round your intermediate calculations to 2 decimal places.) Multiple Choice The unit product cost of Product U6 under traditional casting greater than its unit product cost under activity based costing by $33302 The unit product cost of Product UG under traditional costing is less than its unit product cost under activity-based costing by $33302 The unit product cost of Product 6 under traditional costing is greater than its unit product cost under activity based costing by 5412 The unit product cost of product Us under traditional conting is less than unit product cost under sctivity-based costing by 5412

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