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Needing help in advanced managerial accounting. Please help 7. (20 points) Crescent Pharmaceuticals manufactures an over-the-counter allergy medication. Th commercial containers of 1,000 capsules to
Needing help in advanced managerial accounting. Please help
7. (20 points) Crescent Pharmaceuticals manufactures an over-the-counter allergy medication. Th commercial containers of 1,000 capsules to health care facilities and travel packs of 20 capsules t and hotels. The following information has been developed to determine if an activity-based costi Actual production information includes the following: a. Compute the activity-based indirect cost per unit for commercial containers and travel packs. S b. Assume that, traditionally, the company allocated total indirect (overhead) costs using a single containers and travel packs using the traditional system. Show your analysis below: c. Compare the indirect cost/unit under the activity-based system with the indirect costs/unit un Explain. ounter allergy medication. The company sells both large d travel packs of 20 capsules to shops in airports, train stations, mine if an activity-based costing system would be beneficial: Units produced Weight in kilos Machine hours Number of samples Commercial 4,000 16,000 3,500 700 containers and travel packs. Show your analysis below. overhead) costs using a single indirect cost driver: machine hours. Calculate the indirect cost/unit for commercial analysis below: with the indirect costs/unit under the traditional system. Which system more accurately allocates indirect costs? /unit for commercial ates indirect costs? Travel packs 54,000 8,000 640 1375Step by Step Solution
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