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 3. Jacobson Pharmaceuticals's original single-allocation-based cost system allocated indirect costs to products at $320 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. Indirect cost Product allocated Commercial Travel Now compute the indirect cost per unit for each product under the original single-allocation-base system. (Round the cost per unit to the nearest cent.) Commercial Container Travel Pack Total indirect costs allocated / Number of units Indirect cost per unit