1.	Compute the cost allocation rate for each activity.
2.	Use theactivity-based cost allocation rates to compute the indirect cost of each unit of the commercial containers and the travel packs. (Hint: Compute the total activity costs allocated to each product line and then compute the cost perunit.)
3.	Thecompany's originalsingle-allocation-based cost system allocated indirect costs to products at $ 350per machine hour. Compute the total indirect costs allocated to the commercial containers and to the travel packs under the original system. Then compute the indirect cost per unit for each product.
4.	Compare theactivity-based costs per unit to the costs from the original system. How have the unit costschanged? Explain why the costs changed as they did.