Warder, Inc., manufactures and sells two products: Product B9 and Product W2. 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 B9 700 6.0 4,200 Product W2 400 4.0 1,600 Total direct labor-hours 5,800 The direct labor rate is $20.50 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit Product B9 $105.40 Product W2 $181.30 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 B9 Product W2 Total Labor-related DLHs $109,794 4,200 1,600 5,800 Production orders orders 43,680 300 400 700 General factory MHs 741,900 4,900 5,100 10,000 $895,374 Which of the following statements concerning the unit product cost of Product B9 is true?

A)The unit product cost of Product B9 under traditional costing is less than its unit product cost under activity-based costing by $266.57.

B)The unit product cost of Product B9 under traditional costing is greater than its unit product under activity-based costing by $308.74.

C)The unit product cost of Product B9 under traditional costing is less than its unit product cost under activity-based costing by $308.74.

D)The unit product cost of Product B9 under traditional costing is greater than its unit product under activity-based costing by $266.57.