Gibson Pharmaceuticals manufacturers an over-the-counter allergy medication. The company sells both 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. The following information has been developed to determine if an activity-based costing system would be beneficial: 23 (Click the icon to view the information.) ary Read the requirements. ces Requirement 1. Gibson's original single plantwide overhead allocation rate costing system allocated indirect costs to products at $140.00 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 mig - manutacturing Round dollar amounts to two decimal places.) on To Indirect cost per unit Data Table Estimated Quantity of Allocation Base Estimated Activity Indirect Costs Allocation Base Materials handling $ 96,000 Number of kilos Number of machine Packaging 210,000 hours 24,000 kilos 3,000 hours Quality assurance 114,000 Number of samples 1,900 samples $ 420,000 Total indirect costs Actual production information includes the following: Commercial Containers Travel Packs Units produced Weight in kilos 3,200 containers 16,000 51,000 packs 5,100 Print Done - Data Table TRIGLCTICIS HICITUny UUUUU ULTIRULUI INTIVO 2T,UU HUU 3,000 hours Packaging Number of machine 210,000 hours 114,000 Number of samples 420,000 Quality assurance 1,900 samples $ Total indirect costs Actual production information includes the following: Commercial Containers Travel Packs 3,200 containers Units produced Weight in kilos Machine hours 51,000 packs 5,100 16,000 2,400 510 Number of samples 320 765 Print Done Requirements allocattu II TUILEUL LUSS LO PIVUutis at 140.00 per marHTE HOU. Upute UIC 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