Harcourt 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 deveoped to determine if an activity-based costing system would be beneficial: (Table Below)

Read the Requirements: (below)

My Progress Below:

Estimated Indirect Costs Allocation Base Estimated Quantity of Allocation Base Activity Materials handling Packaging $ 24,000 kilos 3,000 hours 96,000 Number of kilos 210,000 Number of machine 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 Units produced Weight in kilos 2,800 containers 9,800 51,000 packs 5,100 1,960 510 Machine hours 560 765 Number of samples 1. Harcourt'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. 2. 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.) 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. 3. (book/static) Question Help court Pharmaceuticals manufacturers an over-the-counter alergy medication. The company els both large commercial containers of 1,000 capsule to health care facilities and travel packs of 20 ces to shape in sports, stations, and hotels. The following information has been developed to determine it on civity-based cooling system would be beneficial mm Click the icon to view the information Read the forume Requirement 1. Harcourt's original single planta de overhead allocation rate conting system allocated indred costs to products at $140.00 per machine hour. Computer total direct costs located to the commercial contenant to the travel packs under the original system. Then compute the indirect cost per unit for each product Round to two decimal piace Select the formula, and then enter the amounts to compute the indirect cost per unit for each product. (Abreviation and manufacturing. Round dollar amounts to two decimal places) Alocated mig Hot Number of units Indirect cost per un Commercial containers Enter any number in the field and then click Check Answer Clear All Check Awe 10 parts remaining