Data Table $-$ Estimated Estimated Indirect Allocation Quantity of Activity Activity Costs Base Allocation Base Materials handling S $180,000$ kilograms $18,000$ kg Packaging $420,000$ Machine hours $\mathrm{.}2,200$ hours Quality assurance $2,400$ samples S Total indirect costs $714,000$ The commercial$-$container Breathe product line had a total weight of $8,400$ kilograms, used $2,100$ machine hours, and required $240$ samples. The travel$-$pack line had a total weight of $6,600$ kilograms, used $700$ machine hours, and required $340$ samples. Corbertt produced $3,400$ commercial containers of Breathe and $90,000$ travel packs. $114,000$ Samples Print Done

Requirement $1.$ Compute the cost allocation rate for each activity. Determine the formula, then compute the cost allocation rate for each activity. $($Round your answers to the nearest whole dollar.$)$ Activity overhead rate Mat, handling kg Packaging $/$hour sample Requirement $2.$ Use the activity based cost allocation rates to compute the indirect cost the nearest cent.$)$ each unit of the commercial containers and the travel packs. $($Hint: Compute the total activity costs allocated to each product line and then compute the cost per unit.$)($Round the cost per unit to Commercial Container Travel Pack Materials handling Packaging Quality assurance Total indirect costs $/$ Number of units Indirect activity cost per unit

Requirement $3.$ Corbertt Pharmaceuticals' original single$-$allocation$-$based cost system allocated indirect costs to products at $$250$ 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. Indirect cost allocated Product Commercial Travel Now compute the indirect cost per unit for each product under the original single$-$allocation$-$base system. $($Round the cost per unit to the nearest cent.$)$ Commercial Container Travel Pack Total indirect costs allocated Number of units Indirect cost per unit Requirement $4.$ Compare the activity based costs per unit to the costs from the original system. How have the unit costs changed? Explain why the costs changed as they did. The original system the commercial containers and the travel packs The original system allocated The ABC system However, commercial containers V$.$ So$,$ relative to the original system, ABC allocates of the material handling and quality assurance costs to commercial containers