McNeil Pharmaceuticals manufactures an over-tho-counter allergy medication called Breathe and is trying to win market share from Sudafed and Claritin. McNoil Pharmaceuticals has developed soveral diflerent Breathe producls tailored to spectic markets. For example, the company sells large commercial containers of 1.000 capsules to hoalth-care faciities and travel packs of 20 capsules to shops in airports, train stations, and hotels McNeil Pharmaceuticals' controler, Sandra Dean, has just returned frcm a conference on ABC. She asks Keith Yeung, supervisor of the Breathe product line, to halp her deveiop an ABC system. Dean and Young identify? the following activitios, related costs, and cost allocation basos. The commercial-container Breathe product line had a total weight of 8,400 kilograms, used 1,500 machine hours, and required 190 samples. The travel-pack line had a total weight of 5,500 kilograms, used 500 machine hours, and required 340 samples. McNeil produced 2,800 commercial containers of Breathe and 45,000 travel packs. 1. Compute the cost allocation rate for each activity. 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.) 3. McNeil Pharmaceuticals' original single-allocation-based cost system allocated indirect costs to products at $350 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. 4. Compare the activity-based costs per unit to the costs from the original system. How have the unit costs changed? Explain why the costs changed as they did