HCl Pharmaceuticals manufactures an over-the-counter allergy medication called Breathe and is trying to win market share from Sudafed and Claritin. HCl Pharmaceuticals has developed several different Breathe products tailored to specific markets. For example, the company sells 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. Viewer HCl Pharmaceuticals' controller, Sandra Dean, has just returned from a conference on ABC. She asks Keith Yeung, supervisor of the Breathe product line, to help her develop an ABC system. Dean and Yeung identify the following activities, related costs, and cost allocation bases: (Click the icon to view the information.) Requirement 1. Compute the cost allocation rate for each activity. Determine the formula and then compute the cost allocation rate for each activity. (Round your answers to the nearest whole dollar.) packs under the original system. Then, compute the indirect cost per unit for each product. Now compute the indirect cost per unit for each product under the original single-allocation-base system. (Round the cost per unit to the nearest cent.) Requirement 4. Compare the activity-based costs per unit to the costs from the original system. How have the unit costs changed? Explain why the costs changed as they did. The original system the commercial containers and the travel packs. The original system allocated However, commercial containers The ABC system So, relative to the original system, ABC allocates of the material handling and quality assurance costs to commercial containers. Additional information The commercial-container Breathe product line had a total weight of 7,600 kilograms, used 1,500 machine hours, and required 250 samples. The travel-pack line had a total weight of 5,600 kilograms, used 500 machine hours, and required 350 samples. HCl produced 2,300 commercial containers of Breathe and 75,000 travel packs. HCl Pharmaceuticals manufactures an over-the-counter allergy medication called Breathe and is trying to win market share from Sudafed and Claritin. HCl Pharmaceuticals has developed several different Breathe products tailored to specific markets. For example, the company sells 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. Viewer HCl Pharmaceuticals' controller, Sandra Dean, has just returned from a conference on ABC. She asks Keith Yeung, supervisor of the Breathe product line, to help her develop an ABC system. Dean and Yeung identify the following activities, related costs, and cost allocation bases: (Click the icon to view the information.) Requirement 1. Compute the cost allocation rate for each activity. Determine the formula and then compute the cost allocation rate for each activity. (Round your answers to the nearest whole dollar.) packs under the original system. Then, compute the indirect cost per unit for each product. Now compute the indirect cost per unit for each product under the original single-allocation-base system. (Round the cost per unit to the nearest cent.) Requirement 4. Compare the activity-based costs per unit to the costs from the original system. How have the unit costs changed? Explain why the costs changed as they did. The original system the commercial containers and the travel packs. The original system allocated However, commercial containers The ABC system So, relative to the original system, ABC allocates of the material handling and quality assurance costs to commercial containers. Additional information The commercial-container Breathe product line had a total weight of 7,600 kilograms, used 1,500 machine hours, and required 250 samples. The travel-pack line had a total weight of 5,600 kilograms, used 500 machine hours, and required 350 samples. HCl produced 2,300 commercial containers of Breathe and 75,000 travel packs