Motor Mouth Communications manufactures four types of cell phones - basic, mid-level, deluxe and super-deluxe. Overhead costs are currently allocated using direct labor costs, but the Controller has recommended an activity-based costing system using the data below. a. Compute the amount of overhead allocated to the cell phones under activity-based costing. Show your work. b. Compute the amount of overhead allocated to each of the cell phones using direct labor hours as the allocation base. Show your work. c. Does it appear that Motor Mouth might benefit from an Activity-Based Costing system? Why or why not? Activity Level Super- Deluxe 250 Activity Production setup Material handling and requisition Quality control Total Overhead Direct labor costs Direct labor hours Cost Driver Cost Number of set 3,000,000 Number of rec 2,600,000 Number of ins 2,800,000 8,400,000 Basic 450 400 220 Mid-Level Deluxe 550 600 150 200 400 500 750 560 300,000 15,000 350,000 12,500 450,000 10,000 500,000 25,000