Estimated Estimated Quantity of Activity Indirect Costs Allocation Base Allocation Base Materials handling 95,000 Number of kilos 19,000 kilos Packaging 200,000 Number of machine hours 5,000 hours Quality assurance 112.500 Number of samples 1,875 samples $ 407,500 Total indirect costs Actual production information includes the following: Units produced Weight in kilos Machine hours Number of samples Commercial Containers 2,800 containers 12,600 2,240 Travel Packs 50,000 packs 10,000 500 280 750 Jacobson 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: Requirement 1. Jacobson'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. two decimal places.) Allocated mfg. OH cost Number of units = Indirect cost per unit Commercial containers II Travel packs Begin by selecting the formula to allocate overhead (OH) costs. Predetermined OH allocation rate * Actual qty of the allocation base used Allocated mfg. overhead costs Compute the total activity-based costs allocated to commercial containers, and then compute the cost per unit for commercial containers. activity-based costs allocated to travel packs then compute the cost per unit for travel packs. (Round the cost per unit to two decimal plac Commercial containers Travel packs Materials handling Packaging Quality assurance Total activity-based costs Number of units Activity-based cost per unit