Molette, Inc., manufactures and sells two products: Product A8 and Product P0. 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 A8	700	8.0	5,600
Product P0	1,000	11.0	11,000
Total direct labor-hours			16,600

The direct labor rate is $28.80 per DLH. The direct materials cost per unit for each product is given below:

	Direct Materials Cost per Unit
Product A8	$191.40
Product P0	$171.10

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 A8	Product P0	Total
Labor-related	DLHs	$625,986	5,600	11,000	16,600
Machine setups	setups	52,426	500	600	1,100
General factory	MHs	201,438	4,800	4,500	9,300
		$879,850

Which of the following statements concerning the unit product cost of Product A8 is true?

The unit product cost of Product A8 under traditional costing is greater than its unit product under activity-based costing by $159.00.

The unit product cost of Product A8 under traditional costing is less than its unit product cost under activity-based costing by $159.00.

The unit product cost of Product A8 under traditional costing is less than its unit product cost under activity-based costing by $60.25.

The unit product cost of Product A8 under traditional costing is greater than its unit product under activity-based costing by $60.25.