apter 4 Question 9, P4-49A (similar to) Part 1 of 11 Wallace Pharmaceuticals manufactures an over-the-counter allergy medication called Breathe. Wallace 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. HW Score: 42.08%, 4.21 of 10 points O Points: 0 of 2 Save Wallace's controller, Susan DelGudico, has just returned from a conference on ABC. She asks Keith Yeung, supervisor of the Breathe product line, to help her develop an ABC system. DelGudico and Yeung identify the following activities, related costs, and cost allocation bases: (Click the icon to view the information) Read the requirements C Requirement 1. Determine the formula, then compute the cost allocation rate for each activity. (Round your answers to the nearest whole dollar. Abbreviations used: Mat Materials, QA-Quality assurance) Activity cost allocation rate 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 Data table asks Keith Young, supervisor of the Breathe produc system. DelGudico and Yeung identify the following allocation bases: formation.) - X Activity Requireme assurance) Estimated Indirect Activity Costs Allocation Base Estimated Quantity of Allocation Base ollar. Abbreviations u Materials handling $ 130,000 Kilos 13,000 kilos Packaging. 460,000 Machine hours 2,300 hours 118,000 Quality assurance Samples 2,000 samples 708,000 Total indirect costs The commercial-container Breathe product line had a total weight of 8,096 kilos, used 1,800 machine hours, and required 260 samples. The travel-pack line had a total weight of 5,976 kilos, used 600 machine hours, and required 360 samples. Wallace produced 2,700 commercial containers of Breathe and 30,000 travel packs Print Done 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. Requirement assurance) Requirements 1. Compute the cost allocation rate for each activity. system. DelGudico and Yeung identify the following allocation bases: (Click the icon to view the information.) 2. Use the activity-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 per unit.) - X 3. The company's original single-allocation-based cost system allocated indirect costs to products at $300 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. 4. Compare the activity-based costs per unit to the costs from the original system. How have the unit costs changed? Explain why the costs changed as they did. dollar. Abbreviations u Print Done