X Requirements at 11 1. Sawyer'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 als gir al rer by Print Done per machine bow Compute the totaliidivant.conto allocated to the commercial containers and to the trawlugacks u - X 0 Data Table cturi + Estimated Quantity of Allocation Base Activity Materials handling Packaging Estimated Indirect Costs Allocation Base $ 95,000 Number of kilos 200,000 Number of machine hours 112.500 Number of samples $ 407 500 19,000 kilos 5,000 hours cation Quality assurance 1.875 samples Total indirect costs Actual production information includes the following: Travel Packs Commercial Containers 3,200 containers 9,600 2,400 640 Units produced Weight in kilos Machine hours Number of samples 50,000 packs 5,000 500 iners a ated to 750 ers. Fid Print Done vel packs This Question: 5 pts Sawyer Pharmaceuticals manufacturers an over-the-counter allergy medication. The company sells both large commercial containers of 1,000 activity-based costing system would be beneficial (Click the icon to view the information.) Read the requirements Requirement 1. Sawyer's original single plantwide overhead allocation rate costing system allocated indirect costs to products at $81.50 per m 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 mig = manufacturing Indirect cost per unit Commercial containers Travel packs + Requirement 2. Compute the predetermined overhead allocation rate for each activity iners of 1,000 capsules to health care facilities and travel packs of 20 capsules to shops in airports, train stations, and hotels. The following infor , train stations, and hotels. The following information has been developed to determine if an Sawyer Pharmaceuticals manufacturers an over-the-count activity-based costing system would be beneficial: (Click the icon to view the information.) Read the requirements
