Managerial Accounting (ACG 2071E) Spring 2020 (1) kimberly adams & Save Homework: Chapter 19 HW Score: 0 of 1 pt 9 of 9 (8 complete) P19-33A (similar to) HW Score: 78.4%, 7.06 of 9 pts Question Help Gibson 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 PE (Click the icon to view the information.) Read the requirements Requirement 1. Gibson's original single plantwide overhead allocation rate costing system allocated indirect costs to products at $154 88 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) - Indirect cost per unit Choose from any drop-down list and then click Check Answer 11 remaining Check Answer Type here to search o wie W pl 9 of 9 (8 complete) HW Score: 78.4%, 7.06 o similar to) Question Help ceuticals manufacturers an over the counter allergy medication. The company sells both large commercial containers of 1,000 Ith ca ion has be etermi A Requirements con to emer Gibg Comp irect 4.88 per m. Then ala, a Gibson's original single plantwide overhead allocation rate costing system allocated indirect costs to products at $154.88 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 Compute the predetermined overhead allocation rate for each activity. Use the predetermined overhead allocation rates to compute the activity-based costs per unit of the commercial containers and the travel packs. Round to two decimal places. (Hint: First compute the total activity-based costs allocated to each product line, and then compute the cost per unit) 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 ufacturing hount Print Done weignin kos GU y drop 1540 Machine hours Number of samples 1 Data Table of 1,00 on has Activity Materials handling Packaging Quality assurance Total indirect costs Estimated Indirect Costs Allocation Base S 98,000 Number of kilos 209,000 Number of machine hours Estimated Quantity of Allocation Base 24,500 kilos 2,786 hours 2,075 samples 1.88 pe m. The 124,500 Number of samples 431.500 ufactur Actual production information includes the following: Units produced Weight in kilos Machine hours Number of samples Commercial Containers 2.200 containers 7.700 1540 Travel Packs 56,000 packs 5.600 560 220 840 Print Done O iw
