Jacobson Pharmaceuticals manufactures an over-the-counter allergy medication called Breathe and is trying to win market share from Sudafed and Claritin. Jacobson Pharmaceuticals has developed several different Breathe products tailored to specific markets. For example, the company sells 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. Jacobson Pharmaceuticals' controller, Sandra Dean, has just returned from a conference on ABC. She asks Keith Yeung, supervisor of the Breathe product line, to help her develop an ABC system. Dean and Yeung identify the following activities, related costs, and cost allocation bases: |(Click the icon to view the information.) Requirements Estimated Estimated Indirect Allocation Quantity of Activity Activity Costs Base Allocation Base Materials handling $ 136,000 Kilograms 17,000 kg Packaging 648,000 Machine hours 2,700 hours Quality assurance 98,400 Samples 2,050 samples $ Total indirect costs 882,400 The commercial-container Breathe product line had a total weight of 8,300 kilograms, used 1,440 machine hours, and required 220 samples. The travel-pack line had a total weight of 5,800 kilograms, used 480 machine hours, and required 370 samples. Jacobson produced 2,300 commercial containers of Breathe and 55,000 travel packs. Requirement 2. Use the activity-based cost allocation rates to compute the indirect cost of each unit of the commercial containers and the travel packs. (Hint: Compute the total activity costs allocated to each product line and then compute the cost per unit.) (Round the cost per unit to the nearest cent.) Commercial Container Travel Pack Materials handling Packaging Quality assurance Total indirect costs / Number of units Indirect activity cost per unit