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 department is estimated to require 2,000 direct labor hours. The tota indirect labor is budgeted to be $200,000. 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: 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 activities -one for setup and the other for production support. c. Determine the activity cost per unit for indirect labor allocated to each product under activity-based costing. Cell phones Tablet PCs per unit 5 per unit d. Why are the per-unit allocated costs in (a) different from the per-unit activity cost assigned to the products in (c)? The per-unit indirect labor costs in (a) are distorted because is consumed by the products in a different ratio from the direct labor the costing method properfy alfocates the setup-related activity so that the receive a larger portion of the setup activity cost. The allocates overhead only on the basis of direct labor hours, since the direct labor hours equal for each broduct, the allocated indirect labor will abo equal