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 $652,800. Time records from indirect labor employees revealed that they spent 40% of their time setting up production runs and cow 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 500 2,000 96,000 1,100 2.000 96,000 1,600 4,000 192.c60 Tablet PCs Total If required, round your answers to the nearest cent a. Determine the Indirect tabor 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 2 X per unit Tablet PCs 2x 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 150,000 x 75 Xper setup Production support 225,000 60 X per direct labor hour c. Determine the activity cost per unit for indirect labor allocated to each product under activity-based costing. Setup Cell phones 45,000 X per unit Tablet PCS 1.68 X per unit