P4-43A (similar to) Question Help Robert Pharmaceuticals manufactures an over-the-counter allergy medication ca ed Breathe. Robert is trying to win market Robert's controller, Sylvia Dwyer, has just returned from a conference on ABC. She asks Kyle Young, supervisor of the share from Sudafed and Tylencl. The company has developed several different Breathe products tailored to specific markets. Breathe product line, to help her develop an ABC system. Dwyer and Young identify the following activities, related costs, and For example, the company seils large commercial containers of 1,000 capsules to health-care facilkies and travel packs of 20 gost allocation bases: capsules to shops in airports, train stations, and hotels 3 Click the icon to view the information.) Read the tequirements. unit.) (Round the cosl per unit to the nearest cent.) Commercial Container Travel Pack 80,000 S Malerials handling Packaging Quality assurance Tolal indirecl cosls / Number of units Indirect activity cost per unit Requirement 3. Tho company's original singlo-allocation-based cost system allocatod indiroct costs to products at $300 per machine hour. Computo the total indiroct costs allocatod to the commcrcial containers andl to tho travel packs under the original 240.000 10,000 330,000 2,500 132.00 60,000 B0,000 15,000 155,000 50,000 3.10 systom. Then computo the indiroct cost por unit for cach product Indirect cost llocated S 380,000 $ 120,000 Actual quantity of allocation base x Cost allocation ratc 300 300 Produc 1,200 400 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 Total indirect costs allocated /Number of units Indiroct cost per unit Data Table iRequirements Estimated Indirect Allocation Estimated Quantity Activity Materials handling Packaging Quality assuranca Total indirect costs 1. Compute the cost allocation rate for each activity. 2. Use the activity-based cost allocatian rates to compute the indirect cost af each unit of the Activity Costs Base 190,000 Kilos 400,000 Machine hours 112,500 Samples 702,500 of Allocation Base 19,000 kilos 2,000 hours 2,250 samples 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. The company's original single-allocation-based cost system allocated indirect costs to products at $300 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 The commercial-oontainer Breathe product line had a total weight of 8,000 kilos, used 1,200 machine hours, and required 200 samples. The travel-pack line had a total weight of 6,000 kilos, used 400 machine hours, and required 300 samples. Robert produced 2,500 commercial containers of rthe and 50,000 travel packs. costs changed? Explain why the costs changed as they did. Print Done Print Done