Wallace 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 Requirement 1. Wallace's original single plantwide overhead allocation rate costing system allocated indirect costs to products at $81.50 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 Select the formula, and then enter the amounts to compute the indirect cost per unit for each product (Abbreviation used: mfg manufacturing Round dollar amounts to two decimal places:) Allocated mfg. OH cost Number of units Commercial containers Travel packs 152,812 40,750 2500 50,000 Indirect cost per unit 61.12 082 Requirement 2. Compute the predetermined overhead allocation rate for each activity Begin by selecting the formula to calculate the predetermined overhead (OH) allocation rate. Then enter the amounts to compute the allocation rate for each activity (Abbreviation used ty quantity Round your answers to the nearest whole dollar) Predetermined OH alocation rate Materials handling Packaging Quality assurance 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 decimal places. (He First compute the total activity-based costs allocated to each product line, and then compute the cost per unit) Begin by selecting the formula to allocate overhead (OH) costs Allocated mig 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-based costs allocated to travel packs then compute the cost per unit for travel packs. (Round the cost per unit to two decimal places.) Materials handling Packaging Quality assurance Commercial containers Travel packs Total activity-based costs Number of units Activity-based cost per unit 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 (ABC), the traditional system the commercial containers and the travel packs Activity-based costing (ABC) recognizes that although commercial containers require machine hours per und the same proportion of material handling and quality assurance The traditional system allocates overhead costs solely on than travel packs, they er Data table Activity he Materials handling cing Estimated Indirect Costs Allocation Base, 95,000 Number of kilos Packaging Quality assurance. 200,000 Number of machine hours 112,500 Number of samples Ota en $ 407,500 Total indirect costs dlin - X Estimated Quantity of Allocation Base 19,000 kilos 5,000 hours 1,875 samples Actual production information includes the following: Commercial Containers and bas mits d co t 4. ctivit al sy Units produced Weight in kilos Machine hours Number of samples Travel Packs 2,500 containers 50,000 packs 12,500 5,000 1,875 500 250 750 Print Done the pa mn