Activity based cowing and groduct cost distortion Crenshaw Inc is considering a change to activity-based product costing. The company produces two aroducts, cell phones and tablet pCs, in a shole production departntent, The production department is estimated to require 4.000 direct labor hours. The total indiect labor is bodocted to be $604,800, Time records from ladirect labor emplorees revealed that they spent 40% of their time setting up production runs and 60% of their time supporting actual production. The following irformation about cell phones and tablet PCs was determined from the comorate fecords: If required, round your answers to the nearest ceet. Ceil shoeses per unit c. Determine the activiny cosf per unit for indirect lateir alocated to each preduct under activety based cosing: Cell bhoeesi_ per unit Tablet PCs per unat d. Why are the persil allocated costs in (a) delerent tram the per-ueit advitycost avsigned to the sooducte in (c)? The per-bit indirect labor conts in (a) are distorted beciusn A is consumed by the products in a different ratio feam the direct laber. The method results in the roodoct with the hilinter of setwos receiving a targer portion of the setos activity cait. The oaual for sach preduct, the allociend indrect tabor will also? Fatlocates werhead oniy an the basis of drect labor heurs, sinte the direct laber hours equal