The right answer is D. Just show me how to get it

The next thrce questions are bused on the following: A company is considering switching to an activity-based costing (ABC) system. The company produccs and sclls two products: Basic and Pro. The production of the Pro products requires more expensive materials and more experienced workers. The company consists of two dcpartments: Production (wherc all manufacturing activities arc taken) and Markcting (which cngagcs in sclling and admin activity only). The cmpany's lradu,onal costing system computes unit product costs as dictated by GAAP, direct labor cost (DLC is used as the allocation buse for manulaluring overhead cost (the overhead rate is rounded lo the nearest cenl The ABC system will include in unit costs all costs casily associated with units. In addition, in the ABC system, therc ar four major indirect activiics: Machine Sctups, Special Processing, Faclory Supervision, and Customer Relations. In the ABC system, Customer Rclations costs will he associated with customers; the rest of the costs will he associated with units of the two products 9% of Customer Relations cost relates to manufacturing and is incurred in the Production Department; the rest of the Customer Relations cost is incurred in the Marketing Denartment. The prices, direct material cost shi DM $44 S60 cost and DLIIs bw are iven for one unit of the Hourly Shipping Wage-DL DLIIs Units 6000 4000 Cost S1 S3 Basic $150 $250 Pro The c collected the data for ABC as follows: Estimated Activity measures used Basic Pro 40 20 8,000 12,000 Activity Cost Pool Machine Setup Special Processing Factory Supervision Customer Relations (on 5 customens Activity Measure # of setups Machine hours DLC of customers OH cost 360,000 $ 135,000 225,000 200,000 4 What is the difference between the Pro product's unit costs computed by the traditional and ABC systems? A. B. C. D. E. Under the traditional costing system, the unit cost of the Pro product is higher by Under the traditional costing system, the unit cost of the Pro product is lower by Under the traditional costing system, the unit cost of the Pro product is higher by Under the traditional costing system, the unit cost of the Pro product is lower by None of the above S 2.25 per unit. S2.25 per unit. S 5.25 per unit. S 5.25 per unit