1. compute the cost allocation rate for each activity

2. use the activity based cost allocation rates to compute the indirect cost of each unit of the commercial containers in the travel packs.

3. The companies original single allocation based car system allocated indirect costs to produce at $300 per machine hour. Compute the total indirect costs per unit for each product

4. compare the activity based cost per unit to the costs from the original system. How have the unit costs changed? Explain why the cost changed as they did

madhore ABC Yang theowing weed costs and c of the ontes product ede werdenABC Duo Suddy. The conc word of 1.000 re produced d e for shops in the wat OD Ayeste Toined cost 5 hrine and complete copert) 1. The song download director and hours, 300 M the windo. com e d. com corren of Breated 0.000 have . Compare had the to the othe changedased Activity Materials handling ........ Packaging Quality assurance Estimated Indirect Allocation Activity Costs Base 190,000 kilos 400,000 Machine hours Estimated Quantity of Allocation Base 19,000 kilos 2,000 hours 112,500 Samples 2,250 samples 702,500 Total indirect costs... The commercial-container Breathe product line had a total weight of 8,000 kilos, used 1.200 machine hours, and required 200 samples. The travel-pack line had a total weight of 6,000 kilos, used 400 machine hours, and required 300 samples. Maloney produced 2,500 commercial containers of Breathe and 50,000 travel packs. Maloney Pharmaceuticals manufactures an over-the-counter allergy medication called Breathe. Maloney is trying to win market share from Sudafed and Tylenol. The company has developed several different Breathe products tailored to specific markets. For example, the company sells large commercial containers of 1,000 capsules to health-care facilities and travel packs of 20 capsules to shops in airports, train stations, and hotels. Allocation Estimated Indirect Activity Costs Activity Materials handling Packaging Estimated Quantity of Allocation Base 19,000 kilos 2,000 hours 190.000 Kilos 400,000 Machine hours Quality assurance.. 112,500 Samples 2,250 samples 702,500 Total indirect costs... The commercial-container Breathe product line had a total weight of 8,000 kilos, used 1,200 machine hours, and required 200 samples. The travel-pack line had a total weight of 6,000 kilos, used 400 machine hours, and required 300 samples. Maloney produced 2,500 commercial containers of Breathe and 50,000 travel packs