Homework: Chp M4: Homework Save Score: 1.58 of 30 pts 1 of 4 (1 complete) HW Score: 1.58%, 1.58 of 100 pts PM4-32A (similar to) Question Help O Maloney 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: (Click the icon to view the information.) Read the requirements. - Requirement 1. Maloney's original single plantwide overhead allocation rate costing system allocated indirect costs to products at $31.50 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. Select the formula, and then enter the amounts to compute the indirect cost per unit for each product. (Abbreviation used: mfg. = manufaci 0 Data Table Allocated mig. OH cost Number of units = Indirect cost per unit Commercial containers Estimated Estimated Quantity of Activity Indirect Costs Allocation Base Allocation Base Materials handling S 95,000 Number of kilos 19.000 kilos i Requirements Packaging 200,000 Number of machine hours 5,000 hours Quality assurance 112,500 Number of samples 1,875 samples 1. Maloney's original single plantwide overhead allocation rate costing system allocated indirect S 407,500 Total indirect costs 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 Actual production information includes the following: indirect cost per unit for each product. Round to two decimal places. 2. Compute the predetermined overhead allocation rate for each activity. Commercial Containers Travel Packs 3. Use the predetermined overhead allocation rates to compute the activity-based costs per unit of Units produced 4,000 containers 50,000 packs 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 Weight in kilos 16.000 15,000 per unit.) Machine hours 2.800 500 4. Compare the indirect activity-based costs per unit to the indirect costs per unit from the En traditional system. How have the unit costs changed? Explain why the costs changed. Number of samples 400 750 11 Print Done Clear All Print Done