can you please explain how you got the answer please
Estimated Indirect Costs Allocation Base Estimated Quantity of Allocation Base Activity $ 95,000 Number of kilos 19,000 kilos Materials handling Packaging 200,000 Number of machine hours 5,000 hours Quality assurance 1,875 samples 112,500 Number of samples 407,500 $ Total indirect costs Actual production information includes the following: Commercial Containers Travel Packs Units produced 3,200 containers 50,000 packs Weight in kilos 9,600 5,000 Machine hours 2,560 500 Number of samples 640 750 Requirement 1. Corbertt's original single plantwide overhead allocation rate costing system allocated indirect costs to products at $81.50 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. Select the formula, and then enter the amounts to compute the indirect cost per unit for each product. (Abbreviation used: mfg. = manufacturing. Round dollar amounts to two decimal places.) = Indirect cost per unit Commercial containers = Travel packs = Requirement 2. Compute the predetermined overhead allocation rate for each activity. Begin by selecting the formula to calculate the predetermined overhead (OH) allocation rate. Then enter the amounts to compute the allocation rate for each activity. (Abbreviation used: qty = quantity. Round your answers to the nearest whole dollar.) Predetermined OH = allocation rate Materials handling 11 Packaging 11 Quality assurance 1 11 .... Requirement 3. 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.) Begin by selecting the formula to allocate overhead (OH) costs. Allocated mfg. overhead costs Compute the total activity-based costs allocated to commercial containers, and then compute the cost per unit for commercial containers. Finally, compute the total activity-based costs allocated to travel packs then compute the cost per unit for travel packs. (Round the cost per unit to two decimal places.) Commercial containers Travel packs Materials handling Packaging Quality assurance Total activity-based costs Number of units Activity-based cost per unit Requirement 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. Relative to activity-based costing (ABC), the traditional system the commercial containers and the travel packs. The traditional system allocates overhead costs solely on proportion of material handling and quality assurance. Activity-based costing (ABC) recognizes that although commercial containers require machine hours per unit than travel packs, they V the same
