Robert Pharmaceuticals manufacturers an over-the-counter allergy medication. The company sells both large commercial containers of 1,000 capsules to health care facilities determine if an activity-based costing system would be beneficial: (Click the icon to view the information.) Read th Requirement 3. Use the predetermined overhead allocation rates to compute the activity-based costs per unit of the commercial containers and the travel packs. Round to two per unit.) Begin by selecting the formula to allocate overhead \\( (\\mathrm{OH}) \\) costs. Predetermined \\( \\mathrm{OH} \\) allocation rate ] = Allocated mfg. overhead costs Compute the total activity-based costs allocated to commercial containers, and then compute the cost per unit for commercial containers. Finally, compute the total activity-base decimal places.) Requirements 1. Robert's original single plantwide overhead allocation rate costing system allocated indirect costs to products at \\( \\$ 140.00 \\) 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. Round to two decimal places. 2. Compute the predetermined overhead allocation rate for each activity. 3. Use the predetermined overhead allocation rates to compute the activity-based costs per unit of the commercial containers and the travel packs. Round to two decimal places. (Hint: First compute the total activity-based costs allocated to each product line, and then compute the cost per unit.) 4. Compare the indirect activity-based costs per unit to the indirect costs per unit from the traditional system. How have the unit costs changed? Explain why the costs changed. Requirement 4. Compare the indirect activity-based costs per unit to the indirect costs per unit from the traditional system. How have the unit costs changed? Explain why the costs changed. Relative to activity-based costing \\( (A B C) \\), the traditional syster the commercial containers and the travel packs. The traditional system allocates overhead costs solely on Activity-based costing (ABC) recognizes that although commercial containers require machine hours per unit than travel packs, they the same proportion of material handling and quality assurance