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. Commercial containers $ 195.600.00 + 3,000 $ 55.20 Travel packs $ 40,750.00 + 50,000 = $ 0.82 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: qty = quantity. Round your answers to the nearest whole dollar.) Predetermined OH allocation rate 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 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 Total indirect costs 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 600 750 Requirements 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. 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. Actual overhead costs DO = 65.20 00 0.82 Actual qty of the allocation base used Or ach activity. Estimated overhead costs I) allocation rate. Then enter the amoun est whole dollar.) Estimated qty of the allocation base Pr =