$4,000$ direct labor hours. The total indirect labor is budgeted to be $$496,000.$

Time records from indirect labor employees revealed that they spent $60\%$ of their time setting up production runs and $40\%$ of their time supporting actual production.

The following information about cell phones and tablet PCs was determined from the corporate records:

If required, round your answers to the nearest cent.

a$.$ Determine the indirect labor cost per unit allocated to cell phones and tablet PCs under a single plantwide factory overhead rate system using the direct labor hours as the allocation base.

Cell phones $

per unit

Tablet PCs $

per unit

b$.$ Determine the budgeted activity costs and activity rates for the indirect labor under activity$-$based costing. Assume two activities$-$one for setup and the other for production support.

Budgeted Activity Cost Activity Rate

Setup

$

$

per setup

Production support

$

$

$q$

per direct labor hour

c$.$ Determine the activity cost per unit for indirect labor allocated to each product under activity$-$based costing.

Cell phones $

per unit

Tablet PCs $

per unit

d$.$ Why are the per$-$unit allocated costs in $($a$)$ different from the per$-$unit activity cost assigned to the products in $($c$)?$

The per$-$unit indirect labor costs in $($a$)$ are distorted because

is consumed by the products in a different ratio from the direct labor. The

allocates overhead only on the basis of direct labor hours. Since the direct labor hours

equal.