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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
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 benecial: @ (Click the icon to view the information.) Read the muirements. 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.) + = Indirect cost per unit Data table Estimated Estimated Quantity Activity Indirect Costs Allocation Base of Allocation Base Materials handling $ 95,000 Number of kilos 19,000 kilos Packaging 200,000 Number of machine hours 5,000 hours Quality assurance Number of samples 1,875 samples $ 407,500 Total indirect costs Actual production information includes the following: Commercial Containers Travel Packs Units produced 3,000 containers 50,000 packs Weioht in kilos 10.500 10.000 Actual production information includes the following: Commercial Containers Travel Packs Units produced 3,000 containers 50,000 packs Weight in kilos 10,500 10,000 Machine hours 2,400 500 Number of samples 600 750Allocated mfg. OH cost e's Actual overhead costs ation rate costing system ct iners and to the travel p tw Estimated overhead costs the Number of units irect cost per unit for ea pli
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