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Razorback Remedies produces a natural allergy treatment in tablet form. The company sells large containers of 1,000 tablets to university health centers and small containers

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Razorback Remedies produces a natural allergy treatment in tablet form. The company sells large containers of 1,000 tablets to university health centers and small containers of 50 tablets to health food stores. The company is considering adopting an activity-based costing system and the accountant gathered the following information: Activity Materials handling Estimated Indirect Cost $350,000 Cost Driver Pounds Packaging 500,000 Estimated Activity 58,000 pounds 8,000 hours 6,000 samples Quality control Machine Hours Number of Samples 250,000 Total Indirect costs $1,100,000 Other production information follows: Large Containers Units produced 20,000 Weight in pounds 40,000 Machine hours 6,000 Number of samples 1,000 Small Containers 180,000 18,000 2,000 5,000 1. Razorback's current system allocates indirect cost to products on the basis of machine hours. Calculate the predetermined overhead application rate per machine hour. Predetermined Overhead Rate = $1,100,000/ (6,000+2,000) =$137.50 per machine hour estion 2. Use the overhead application rate per machine hour to compute the indirect cost applied to each product line (large containers and small containers). In addition, calculate the indirect cost per unit for large and small containers. Please include step by step

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