Jacobson Pharmaceuticals manufacturers an over-the-counter allergy medication. The company sells both large commercial containers. ef in shops in airports, train stations, and hotels. The following information has been developed to determine if an activity-based costing sys Click the icon to view the information.) Read the requirements capsules to health care facilities and travel packs of 20 capsules d be beneficial Requirement 1. Jacobson's original single plantwide overhead allocation rate costing system allocated indirect costs to products at $140.00 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) Commercial containers Travel packa Estimated overhead costs Allocated mifg. OH cost Indirect cost per unit Requirement 2. Compute the predetermined overhead allocation rate for each activity Begin by selecting the formula to calculate the predetermined overhead (OH) alocation rate. Then enter the amounts to compute the allocation rate for each activity. Abbreviation used aty quarry Round your answers to the nearest whole dollars Predetermined OH allocation rate Materais hancing Packaging Quality Assurance Requirement 3. Use the predetermined overhead alocation rates to comaute the activity-based costs per unit of the commersial containers and the trave packs Round to two decima places, on First compute the total activity-based costs allocated to each product in and then compute the cost per unit) diped to determine if an activity-based costing system would be beneficial Click the icon to view the information.). Read the requirements Requirement 3. Use the predetermined overhead allocation rates to compute the activity-based costs per unit of the con 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 ontainers and the travel packs. Round to two decimal places. (Hint First 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 pets allocated to packs then compute the cost per unit for travel packs: (Round the cost per unit to two decimal places.) Materials handling Commercial containers Travel packs Packaging Quality assurance Teta activity-based costs Number of units Hothity-based cost per unit et pats per unt from the traditional system. How have the unit costs changed? Explain why the costs changed 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 Activity-based costing (ABC) recognizes that although commercial containers require machine hours per unit than trave the same proportion of material handling and quality assurance The traditional system allocates overhead costs solely on packs, they Estimated Estimated Quantity of Activity Indirect Costs Allocation Base Allocation Base Materials handling $ 96,000 Number of kilos 24,000 kilos Packaging 210,000 Number of machine hours 3,000 hours 114,000 Quality assurance Number of samples 1,900 samples $ 420,000 Total indirect costs Actual production information includes the following: Units produced Weight in kilos Machine hours Number of samples Commercial Containers Travel Packs 2,400 containers 51.000 packs 8,400 5.100 1,920 510 240 785