e total indirect costs allocated to the commercial containers and to the travel packs Requiremen 1. R te infirect enet nor y aimal w products at $81.50 per machine hour. Compute t ystem 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. predetermined overhead (OH) alocation 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.) Begin by selecting the formula to calculate Predetermined OH allocation rate Materials handling Packaging Quality assuranoe on 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 o each product line and then compute the cost per unit. Begin by selecting the formula to allocate overhead (OH) costs. Allocated mfg. overhead costs travel packs then compute the oost per unit t Compute the total activity-based costs allocated too commercial containers, and then compute the cost per unit for commercial containers. Finally, compute the total activity-based costs allocated packs. (Round the cost per unit to two decimal places.) travel Commercial containers Travel packs Materials handling Packaging Quality assurance Total activity-based costs Number af units Activity-based cost per unit Requirement 4. Compare the indirect activity-bassed costs r unit o the indirect oosts 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 travel packs the commercial containers and the same The traditional system allocates overhead costs solely on Activity-based costing (ABC) recognizes that although commercial containers require machine hours per unit than travel packs, they proportion of material handling and quality assurance i Data Table Estimated Estimated Quantity Activity Indirect Costs Allocation Base of Allocation Base Materials handling 95,000 Number of kilos 19,000 kilos Packaging 200,000 Number of machine hours 5,000 hours 112,500 Number of samples Quality assurance 1,875 samples 407,500 Total indirect costs Actual production information includes the following: Commercial Containers Travel Packs Units produced 50,000 packs 2,800 containers Weight in kilos 5,000 8,400 Machine hours 500 2,100 Number of samples 750 560 Print Done X X Requirements 1. Robert'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. 2. Compute the predetermined overhead allocation rate for each activity. 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.) 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. Print Done