Crenshaw 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 2,000 direct labor hours. The total indirect labor for the department is budgeted to be $480,000.

Time records from indirect labor employees revealed that they spent 30% of their time setting up production runs and 70% of their time supporting actual production.

The following information about cell phones and tablet PCs was determined from the corporate records:

Product	Number of Setups	Direct Labor Hours	Units
Cell phones	1,200	1,000	80,000
Tablet PCs	2,800	1,000	80,000
Total	4,000	2,000	160,000

If required, round all per unit answers to the nearest cent.

a. Determine the indirect labor 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 ______ $ per unit Tablet PCs per unit

b. Determine the budgeted activity costs and activity rates for the indirect labor under activity-based costing. Assume two activitiesone for setup and the other for production support.

Activity	Budgeted Activity Cost	Activity Rate
Setup		per setup
Production support		per direct labor hour

c. Determine the activity cost per unit for indirect labor allocated to each product under activity-based costing. Cell phones_________$ per unit Tablet PCs _______$ per unit