ebOokL CencTequireuTounayour answea. Determine the indirect labor cost per unit allocated to cell phones and tablet PCs under a single plantwide factory overhead rate systemusing the direct labor hours as the allocation base.Cell phonesper unitTablet PCsper unitb. Determine the budgeted activity costs and activity rates for the indirect labor under activity-based costing. Assume two activities-one forsetup and the other for production support.Budgeted Activity CostActivity RateSetupper setupProduction support$4per direct labor hourc. Determine the activity cost per unit for indirect labor allocated to each product under activity-based costing.Cell phonesper unitTablet PCsper unitd. 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 becauseis consumed by the products in a different ratio from thedirect labor. The- costing method results in the product with thenumber of setups receiving alarger portion of the setup activity cost. TheY allocates overhead only on the basis of direct labor hours. Since the directlabor hoursequal for each product, the allocated indirect labor will also- equal. rn/takeAssignmenttakeASsiyiеВookActivity-Based Costing and Product Cost DistortionHandbrain Inc. is considering a change to activity-based product costing. The company produces two products, cell phones and tablet PCs, ina single production department. The production department is estimated to require 4,000 direct labor hours. The total indirect labor isbudgeted to be $592,800.Time records from indirect labor employees revealed that they spent 40% of their time setting up production runs and 60% of their timesupporting actual production.The following information about cell phones and tablet PCs was determined from the corporate records:NumberDirectofLaborUnitsSetupsHoursCell phones5002,00076,000< Tablet PCs1,1002,00076,000Total1,6004,000152,000If 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 plantwide factory overhead rate systemusing the direct labor hours as the allocation base.Cell phonesper unitTablet PCsper unit

Name: ebOokL CencTequireuTounayour answea. Determine the indirect labor cos
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Description: ebOokL CencTequireuTounayour answea. Determine the indirect labor cost per unit allocated to cell phones and tablet PCs under a single plantwide factory overhead rate systemusing the direct labor hours as the allocation base.Cell phonesper unitTable

Solution a: Estimated Indirect labor 592800 /Estimated Dierct labor hours 4000…

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Handbrain Inc. is considering a change to activity-based product costing. The company produces two products single production department. The production department is estimated to require 4,000 direct labor hours. udgeted to be $592,800. ime records from indirect labor employees revealed that they spent 40% of their time setting up production upporting 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 76,000 Tablet PCs 1,100 2,000 76,000 Total 1,600 4,000 152,000 f required, round your answers to the nearest cent.

Handbrain Inc. is considering a change to activity-based product costing. The company produces two products single production department. The production department is estimated to require 4,000 direct labor hours. udgeted to be $592,800. ime records from indirect labor employees revealed that they spent 40% of their time setting up production upporting 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 76,000 Tablet PCs 1,100 2,000 76,000 Total 1,600 4,000 152,000 f required, round your answers to the nearest cent.

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Chapter1: Financial Statements And Business Decisions

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