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Lillich, 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 Production Unit 660 8.6 1,035 5.6 Total Direct Labor- Hours 5,676 5,796 11,472 Product 16 Product RS Total direct labor-hours The direct labor rate is $2770 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit $249.50 $166.90 Product 16 Product R5 The company is considering adopting an activity-based casting system with the following activity cost pools, activity measures, and expected activity Expected Activity Activity Cost Pools Labor-related Production orders Order site Activity Measures DLHS ordern MH Estimated Overhead Cost 5 197.138 68,340 1.016.108 $1,281,586 Product 16 Product RS 5,676 5,796 900 800 5,600 5.900 Total 11,472 1.700 11,500 Production orders Order size orders MHS 68,340 1,016,108 $1,281,586 900 5,600 800 5,900 1,700 11,500 Which of the following statements concerning the unit product cost of Product 16 is true? (Round your intermediate cateulations to 2 decimal places.) Multiple Choice The unit product cost of Product Us under traditional costing is greater than its unit product cont under activity based costing by $36121 The unit product cost of Product U6 under traditional conting is less than its unit product cost under activity based costing by $361.21 The unit product cont of Product Us under traditional conting is greater than its unit product cost under activity based costing by $8.42 The unit product cost of product Us under traditional couting is less than its unit product cost under activity based costing by $8.42

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