Activity-Based Costing and Product Cost Distortion Digital Storage Concept Inc. is considering a change to activity-based product costing. The company produces two products, cell phones and tablet PCs, in a single production department. The production department is estimated to require 4,000 direct labor hours. The total indirect labor is budgeted to be s380,800. Time records from indirect labor employees revealed that they spent 40% of their time setting up production runs and 60%% of their time supporting actual production. The following information about cell phones and tablet PCs was determined from the corporate records:

eBook Activity-Based Costing and Product Cost Distortion Digital Storage Concept Inc. is considering a change to activity based product costing. The company produces two products. cell phones and tablet PCs, in a single production department. The production department is estimated to require 4.000 direct labor hours. The total indirect labor la budgeted to be $380.800. Time records from Indirect labor employees revealed that they spent 40% of their time setting up production runs and 60% of their time supporting actual production The following information about cell phones and tablet PCs was determined from the corporate records Number Direct of Labor Units Setups Hours Cell phones 2.000 58,000 Tabat DCE 1.100 2.000 68.000 1.600 4,000 136.000 freed. Yound your anges to the restent a. Determine the Indret laborer une allocated to call shoes and tablet PCs undercle and actory overhead testing the rest laber Monstelocation cul shoes xunt Tablets per un b. Durmine the buigeted activity costs and activitats for the director understred coating on and the rest Hudgeted Activity Cost Activity Rate persatu Producen support per direct labore termine the stories to each und ca phones