Activity-Based Costing and Product Cost Distortion Digital Storage Concept Inc. is considering a change to activity-based product costing. The compuny produces two products, ceil phanes and tablet PCr, in a sinble production department. The production department is estimated to require 4,000 direct labor houns, The total endirect labor is budgeted to be 1748 ,ep0. Time records from ind rect labor empioyees revealed that they spent 40% of thoe time setting up production nans and 60% of their time suppoiting actual preduction. The following information about cell phones and tabiet PCs was determined from the corponate recorts: If reguired, round your answers to the nharest cent. the alacation base. b. Determine the budgeted activity costs and actwity rates for the indirect labor under sctivity based sostong, Asume twa activities-one foc intip and the atier for If required, round your answers to the nearest cent. a. Detemmine the indirect labor cost per unit allecated to cell phones and tablet PCs under a single plantwise factory orerhead rate system using Be deet iasor houn is production support. c. Deterinine the activity cost per unit for indirect labor allocated to each product waser activily bases costang. d. Why are the per-unit alocated costs in (o) different from the pes-yent activiy cost asslgned to the products in (c)? The per-unit indirect labor costs in (a) are datorted becalse if. consurned by the products in a diferent ratio from the aiect laber, The costirg mathod results in the product with the I number of sctups necoving a larper portios af the sedup acoviy tept, The aliccates overhead anly on the Basis of direct lasor hours, since the drect iabor hours