Samsung Group is considering a change to activity$-$based product costing. The company

produces two products, mobile phones and tablet PCs$,$ in a single production department. The

production department is estimated to require $3,750$ direct labor hours. The total indirect labor

is budgeted to be $$375,000.$

Time records from indirect labor employees revealed that they spent $40\%$ of their time setting

up production runs and $60\%$ of their time supporting actual production.

The following information about mobile phones and tablet PCs was determined from the

corporate records:

Provide the following answers in a table format:

a$.$ Determine the indirect labor cost per unit allocated to mobile phones and tablet PCs

under a single plantwide factory overhead rate system using the direct labor hours as

the allocation base.

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.

d$.$ Why are the per$-$unit allocated costs in $($a$)$ different from the per$-$unit activity cost

assigned to the products in $($c$)?$