Corbern Pharmaceuticals manufacturers in over the-counter ay medication. The company solis both le commercial contains of 1.000 capsules to health care fools and travel packs of 20 capsules to shops in mirport, train stations, and hotels. The following information has been developed to determined an activity-based contingere would be beneficiat Click the icon to www the information Read the fronts commercial containers and to the travel packs under the original systemThen compute the indirect cost perunt for each product Round to two decimal porn Select the formula, and then enter the amounts to compute the indirect cost per unit for each product Abbreviation manufacturing. Round dollar amount o decirl place Indirect cost perunt Commercial containers Truve packs Requirement 2. Compute the predetermined overhead allocation rate for each activity Begin by colocting the formula to calculate the predetermined overhead (OH) allocation. Then the amours to complete location rate for the activity. Any Round you answer to the new whole dolar) Pod OH Estimated overnando - Ayol bord Materials funding 90000 24500 75 Packaging 2780 200000 00 2075 124500 Quality sro Next Compute the total activity-based costs located to comments and remote copre comando then compute the cost per un for travel packs Round the cost of two decals Commercial containers Travel packs Materials nanding Packaging Quality Assurance Total actvity-based costs Number of units Activity based cos por un Requirement 4. Compare the indirect activity-based costs por unit to the corect costs per unit from the tradition om How have the changed in why the charged the commercial and the pack Relative to activity-based costing (ABC), the traditional machines The traditional system allocates overhead costs solely on Activity-based coming (ABC) recognize that thoughts packs, they the same proportion of material handing and quality assurance Data table - Estimated Quantity of Allocation Base Activity Materials handling Packaging 24,500 kilos Estimated Indirect Costs Allocation Base $ 98,000 Number of kilos 209,000 Number of machine hours 124,500 Number of samples 431,500 2,786 hours Quality assurance 2,075 samples Total indirect costs Actual production information includes the following: Commercial Containers 2,000 containers 8,000 1,600 Travel Packs 56,000 packs 5,600 Units produced Weight in kilos Machine hours Number of samples 560 400 840 equirements 1. Corbertt's original single plantwide overhead allocation rate costing system allocated indirect costs to products at $154.88 per machine hour. Compute the total indirect costs a cated 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. Compute the predetermined overhead allocation rate for each activity. 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) 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. Print Done
