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Please answer requirements 1-4! Maloney Pharmaceuticals manufactures an over-the-counter allergy medication called Breathe. Maloney is trying to win market share from Sudafed and Tylenol. The
Please answer requirements 1-4!
Maloney Pharmaceuticals manufactures an over-the-counter allergy medication called Breathe. Maloney 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. Maloney's controller, Sandy DeRidder, has just returned from a conference on ABC. She asks Kris Yaman, supervisor of the Breathe product line, to help her develop an ABC system. DeRidder and Yaman identify the following activities, related costs, and cost allocation bases: (Click the icon to view the information.) Requirements 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. the nearest whole dollar. vity cost ation rate Data table The commercial-container Breathe product line had a total weight of 8,700 kilos, used 900 machine hours, and required 270 samples. The travel-pack line had a total weight of 4,450 kilos, used 300 machine hours, and required 370 samples. Maloney produced 3,000 commercial containers of Breathe and 20,000 travel packsStep by Step Solution
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