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ia Data Table X Activity Materials handling Packaging Quality assurance Total indirect costs Estimated Indirect Costs Allocation Base $ 95,000 Number of kilos 200,000 Number
ia Data Table X 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 3,000 containers 9,000 Units produced Weight in kilos Machine hours Number of samples Travel Packs 50,000 packs 5,000 500 2,100 300 750 Print Done 1. McNeil'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
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