% P4-54B (similar to) Data Table Jacobson Pharmaceuticals manufactures an over-the-counter allergy medication called Breathe. Jacobson is trying to win market share from Sudafed and Tylenol. The company 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. Jac the COS Estimated Quantity of Allocation Base Red 18,000 kilos Activity Materials handling Packaging.. Quality assurance Estimated Indirect Activity Costs Allocation Base $ 180,000 Kilos 410,000 Machine hours 113,000 Samples $ 703,000 2,500 hours 1,000 samples Total indirect costs Requirement 1. Determine the formula, then compute the cost allocation rate for each activity. (Round your answers to the nea Activity cost Estimated indirect activity cost Cost allocation base (estimated) allocation rate Mat. handling $ 180,000 18,000 = $ 10 Packaging $ 410,000 2,500 = $ 164 per hour QA $ 113,000 1,000 = $ 113 per sample per kilo The commercial-container Breathe product line had a total weight of 8,127 kilos, used 1,500 machine hours, and required 210 samples. The travel-pack line had a total weight of 6,047 kilos, used 500 machine hours, and required 310 samples. Jacobson produced 3,000 commercial containers of Breathe and 62,500 travel packs. Requirement 2. Use the activity-based cost allocation rates to compute the indirect cost of each unit of the commercial contain cost per unit.) (Round the cost per unit to the nearest cent.) Print Done Commercial Container Materials handling Requirements Packaging Quality assurance Total indirect costs + Number of units Indirect activity cost per unit 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. The company's 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. Enter any number in the edit fields and then click Check Answer. ? parts remaining Check