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:

Requirement 3. Use the predetermined overhead allocation rates to compute the activity-based costs per unit of the commercial contar allocated to each product line, and then compute the cost per unit) Begin by selecting the formula to allocate overhead (OH) costs. Predetermined OH allocation rate Actual qty of the allocation base used Allocated mfg. overhead costs Compute the total activity-based costs allocated to commercial containers, and then compute the cost per unit for commercial containers travel packs. (Round the cost per unit to two decimal places.) Commercial containers Materials handling Packaging Quality assurance Total activity-based costs Number of units Activity-based cost per unit - Data table Estimated Quantity of Allocation Base 24,000 kilos Estimated Activity Indirect Costs Allocation Base Materials handling $ 96,000 Number of kilos Number of machine Packaging 210,000 hours 114,000 Quality assurance Number of samples $ 420,000 Total indirect costs 3,000 hours 1,900 samples Actual production information includes the following: Travel Packs Commercial Containers 2,500 containers or Units produced 51,000 packs 10,200 Weight in kilos 12,500 Machine hours 1,875 510 Number of samples 250 765