Activity-Based Costing and Product Cost Distortion Handbrain 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 departiment is estimated to require 4,000 direct labor hours. The total indirect labor is budgeted to be 5316,800 . Time records fram indirect labor employees revealed that they spent 40% or 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 carporate 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 piantwide factory overhesd rote system using the direct labor hours as the allocation base. Cell phones per unit Tablet PC5 5 per unit b. Determine the budgeted activity costs and activity rates for the indirect labor under activity-based costing. Assume two activities-ine for setsip and the other for production support. c. Determine the activity cost per unit for indirect labor abocated to each product under activity-based costing. d. Why are the per-unit atiocated costs in (a) disterent from the per-unit activity cost assigned to the products in (c)? The pet-unit indirect labor costs in (a) are distorted because costeng method result in the product with the is consumed by the products in a different ratio from the direct iooor, The cost. The allocates cverhead only on the basis of direct labor hours. Since the direct labor hours bumber of setups recelving a larger portion of the setup activity proouct, the allocoted indirect labor will also equal