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TB Problem Qu$.4-205($Algo$)$ Rondeau, Incorporated, manufactures and sells...

Rondeau, Incorporated, manufactures and sells two products: Product V$9$ and Product M$6.$ Data concerning the expected production

of each product and the expected total direct labor$-$hours $($DLHs$)$ required to produce that output appear below:

The direct labor rate is $$28\mathrm{.}20$ per DLH$.$ The direct materials cost per unit for each product is given below:

The company is considering adopting an activity$-$based costing system with the following activity cost pools, activity measures, and

expected activity:

Required:

Calculate the difference between the unit product costs under the traditional costing method and the activity$-$based costing system for

each of the two products. $($Round your intermediate calculations and final answers to $2$ decimal places. Enter your answers as

positive values.$)$Multiple Choice

The unit product cost of Product U$6$ under traditional costing is greater than its unit product under activity$-$based costing by $$372\mathrm{.}51.$

The unit product cost of Product U$6$ under traditional costing is less than its unit product cost under activity$-$based costing by $$372\mathrm{.}51.$

The unit product cost of Product U$6$ under traditional costing is greater than its unit product under activity$-$based costing by $$4\mathrm{.}60.$

The unit product cost of Product U$6$ under traditional costing is less than its unit product cost under activity$-$based costing by $$4\mathrm{.}60.$

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