Requirement 1. Compute the cost allocation rate for each activity. Determine the formula and then compute the cost allocation rate for each activity. (Round your answers to the nearest whole dollar.) Activity I I l I = overhead rate Mat. handling I I l I = Ikg Packaging |:| I :l = /hour QA I I l I = [sample Requirement 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.) (Round the cost per unit to the nearest cent.) Commercial Container Travel Pack Materials handling Packaging Quality assurance Total indirect costs / Number of units Indirect activity cost per unit I;I = Requirement 3. HCI Pharmaceuticals's original singleallocationbased cost system allocated indirect costs to products at $360 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. Indirect cost Product I x I = allocated Commercial I x I = Travel I x I = Now compute the indirect cost per unit for each product under the original singleallocation-base system. (Round the cost per unit to the nearest cent.) Commercial Container Travel Pack Total indirect costs allocated I Number of units Indirect cost per unit Requirement 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 original system V the commercial containers and V the travel packs. The original system allocated Y The ABC system ' v allocates V ofthe material handling and quality assurance costs to commercial containers. However, commercial containers So, relative to the original system, ABC HCI Pharmaceuticals manufactures an overthecounter allergy medication called HCI Pharmaceuticals' controller, Sandra Dean, has just returned from a Breathe and is trying to win market share from Sudafed and Claritin. HCI conference on ABC. She asks Keith Yeung, supervisor of the Breathe Pharmaceuticals has developed several different Breathe products tailored to product line, to help her develop an ABC system. Dean and Yeung identify specific markets. For example, the company sells large commercial containers of the following activities, related costs, and cost allocation bases: 1,000 capsules to healthcare facilities and travel packs of 20 capsules to shops in g (Click the icon to View the information.) airports, train stations, and hotels. Muirements Requirements . Compute the cost allocation rate for each activity. . Use the activitybased 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.) . HCI Pharmaceuticals' original singleallocationbased cost system allocated indirect costs to products at $360 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. . Compare the activitybased costs per unit to the costs from the original system. How have the unit costs changed? Explain why the costs changed as they did