Jacobson 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:

PLEASE FOCUS ON REQUIREMENT 4, below

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 over-costs under-costs the commercial containers and over-costs under-costs the travel packs.

Requirement 3 has been completed : please follow

Allocated mfg OH cost	Number of units	Indirect cost per unit
Commercial containers	290400	2500	116.16
Travel packs	86732.8	56000	1.55

Nicoleta Roebling In net Explore mathxd. Student Pla lse BcId 4393 7278c Nicoleta Roebling I 3/19/17 10:37 AM ACC-2002-Q4317-17EW4-Hunte Save Homework: 1-2 MyAccountingLab Homework: Chapters 16 and 19 HW Score: 49.69%, 39.75 of 80 pts Score: 5.89 of 16 pts 4 of 5 (5 complete P19-32A (similar to) Data Table Jacobson Pharmaceuticals manufacturers an over-the-counter allergy medication. The company sells both large commercia train stations, and hotels. The following information has been developed to determine if an activity-based costing system w BEE (Click the icon to view the information.) Estimated Estimated Quantity Read the requirements. Activity ndirect Costs Allocation Base of Allocation Base Number of units 56.000 Materials handling 98.000 Number of kilo 24,500 kilos 82.25 2.45 Packaging 209,000 Number of machine hours 2,786 hours Activity-based cost per unit 124,500 Number of samples Quality assurance 2,075 samples Requirement 3. Jacobson's original single plantwide overhead allocation rate costing system allocated indirect costs to pro containers and to the travel packs under the original system. Then compute the indirect cost per unit for each product. Roun Total indirect costs Select the formula, and then enter the amounts to compute the indirect cost per unit for each product. (Round dollar amoun Actual production information includes the following: Allocated mig. OH cost Number of units Indirect cost per unit Commercial Containers Travel Packs Commercial containers 290,400.00 2,500 Units produced 2,500 containers 56,000 packs 56,000 155 Travel packs 86.732.80 Weight in kilos 2,500 200 Machine hours 875 560 Requirement 4. Compare the indirect activity-based costs per unit to the indirect costs per unit from the traditional system. Number of samples Relative to activity-based costing (ABC), the traditional system Y the commercial containers and Click to select your answer(s) and then click Check Answer. Print Done All Clear remaining 0:37 AM Start 3/19/2017