Sawyer Pharmaceuticals manufacturers an over-the-counter allergy medication. The company sells both 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. The following information has been developed to determine if an activity-based costing system would be beneficial: (Click the icon to view the information.) Read the requirements. sts to products at X avel packs under the i Requirements tion used: mfg. = unit 1. Sawyer's original single plantwide overhead allocation rate costing system allocated indirect costs to products at $154.88 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. Data Table X Estimated Estimated Quantity of Activity Indirect Costs Allocation Base Allocation Base Materials handling $ 98,000 Number of kilos 24,500 kilos Packaging 209,000 Number of machine hours 2,786 hours 124,500 Quality assurance Number of samples 2,075 samples $ 431,500 Total indirect costs Actual production information includes the following: Commercial Containers Travel Packs Units produced 2,400 containers 56,000 packs Weight in kilos 12,000 5,600 Machine hours 1,680 560 Number of samples 480 840