i x Data Table Activity Materials handling Packaging Quality assurance Total indirect costs Estimated Indirect Costs Allocation Base $ 95,000 Number of kilos 200,000 Number of machine hours 112,500 Number of samples 407,500 Estimated Quantity of Allocation Base 19,000 kilos 5,000 hours 1,875 samples $ Actual production information includes the following: Commercial Containers Travel Packs Units produced 2,000 containers 50,000 packs Weight in kilos 9,000 5,000 Machine hours 1,600 500 Number of samples 200 750 Print Done i Requirements - X 1. Sawyer'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 Requirement 1. Sawyer'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. 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 = Indirect cost per unit Commercial containers Travel packs Allocated mfg. OH cost Actual overhead costs Estimated overhead costs Number of units Requirement 2. Compute the predetermined overhead allocation rate for each activity. Begin by selecting the formula to calculate the predetermined overhead (OH) allocation 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.) Predetermined OH allocation rate Materials handling Packaging Quality assurance Predetermined OH 11 allocation rate - Materials handling Packaging Quality assurance Actual overhead costs Actual qty of the allocation base used Estimated overhead costs Estimated qty of the allocation base Requirement 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.) Begin by selecting the formula to allocate overhead (OH) costs. Allocated mfg. overhead costs Compute the total activity-based costs allocated to commercial containers, and then compute the cost per unit for commercial containers. Finally, compute the total activity-based costs allocated to travel packs then compute the cost per unit for travel packs. (Round the cost per unit to two decimal places.) Commercial containers Travel packs Materials handling Packaging Quality assurance Total activity-based costs Number of units Activity-based cost per unit = Allocated mfg. overhead costs Actual overhead costs Actual qty of the allocation base used Estimated overhead costs Estimated qty of the allocation base Predetermined OH allocation rate Requirement 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. Relative to activity-based costing (ABC), the traditional system the commercial containers and the travel packs machine The traditional system allocates overhead costs solely on Activity-based costing (ABC) recognizes that although commercial containers require hours per unit than travel packs, they the same proportion of material handling and quality assurance Relative to activity-based costing (ABC), the traditional system the commercial containers and the travel packs. over-costs under-costs Relative to activity-based costing (ABC), the traditional system the commercial containers and the travel packs. over-costs under-costs machine The traditional system allocates overhead costs solely on hours per unit than travel packs, they the Activity-based costing (ABC) recognizes that although commercial containers require ial handling and quality assurance. kilos handled. machine hours samples tested. machine The traditional system allocates overhead costs solely on Activity-based costing (ABC) recognizes that although commercial containers require hours per unit than travel packs, they the same proportion of material handling and quality assurance fewer more V machine The traditional system allocates overhead costs solely on Activity-based costing (ABC) recognizes that although commercial containers require hours per unit than travel packs, they the same proportion of material handling and quality assurance. do not require require