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Actual production information includes the following Commercial Containers Travel Packs Units produced 3,500 containers 57,000 packs Weight in dos 13,485 5,515 Machine hours 2.430 570

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Actual production information includes the following Commercial Containers Travel Packs Units produced 3,500 containers 57,000 packs Weight in dos 13,485 5,515 Machine hours 2.430 570 Number of samples 645 Requirements 1. Compute the predetermined overhead allocation rate for each activity. 2. Use the predetermined overhead allocation rates to compute the activity-based costs per unit of the commercial containers and the travel packs. Round to two decimal places. (Hint: First compute the total activity-based costs allocated to each product line, and then compute the cost per unit.) 3. Corberte's original single plantwide allocation rate costing system allocated indirect costs to products at $148.17 per 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. Round to two decimal places. 4. Compare the indirect activity-based costs per unit to the indirect costs per unit from the traditional system. How have the unit costs changed? Explain why the costs changed. Actual production information includes the following Commercial Containers Travel Packs Units produced 3,500 containers 57,000 packs Weight in dos 13,485 5,515 Machine hours 2.430 570 Number of samples 645 Requirements 1. Compute the predetermined overhead allocation rate for each activity. 2. Use the predetermined overhead allocation rates to compute the activity-based costs per unit of the commercial containers and the travel packs. Round to two decimal places. (Hint: First compute the total activity-based costs allocated to each product line, and then compute the cost per unit.) 3. Corberte's original single plantwide allocation rate costing system allocated indirect costs to products at $148.17 per 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. Round to two decimal places. 4. Compare the indirect activity-based costs per unit to the indirect costs per unit from the traditional system. How have the unit costs changed? Explain why the costs changed

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