Estimated IndirectAllocation Estimated Quantity Activity Materials handling Packaging Quality assurance Total indirect costs of Allocation Base 18,000 kilos 2,500 hours 1,000 samples Activity Costs Base 180,000 Kilos 410,000 Machine hours 113,000 Samples 703,000 The commercial-container Breathe product line had a total weight of 8,127 kilos, used 1,500 machine hours, and required 210 samples. The travel-pack line had a total weight of 6,047 kilos, used 500 machine hours, and required 310 samples. McNeil produced 3,000 commercial containers of Breathe and 62,500 travel packs. McNeil Pharmaceutica's manufactures an over-the-counter allergy medication called Breathe. McNeil is trying to win market share from Sudafed and Tylenol. The company has developed several different Breathe products tailored to specific markets. For Breathe product line, to help her develop an ABC system. Driessler and Yung identify the following activities, related costs, and example, the company sells large commercial containers of 1,000 capsules to health-care facilities and travel packs of 20 capsules to shops in airports, train stations, and hotes. McNeis controller, Sophia Driessler, has just returried from a conference on ABC. She asks Keith Yung, supervisor of the cost allocation basos. EBKClick the icon to view the intomation) Read the requirements Requirement 1. Determine the formula, then compute the cost allocation rate for each activity. (Round your answers to the nearest whole dollar. Abbreviations used. Mat-Materials, Q4-Quality assurance) Activity cost allocation rate Mat handling Packaging QA Requirement 2. Use the activity-based cost allocation rates to compute the indirect cost ot each unit ot the commercial containers and the travel packs (Hint Compute the total activity costs allocated to each product line and then compute the cost per unt per kilo per hour per sample (Round the cast per unit to the nearest cent) Commercial Container Travel Pack Materials handling Packaging Quaity assurance Total indirect costs / Number of units Requirement 3. The company's original single-allocation-based cost system allocated indirect costs to products at $350 per machine hour. Compute the total indirect costs allocated to the commecial containers and to the travel packs under the original system. Then compute the indirect cost per unit for each product Indirect cost Product alocated Commercial Travel Now compute the indirect cost per unit tor each product under the original single-alocation-base system. (Round the cost per unit to the nearest cent.) Commercial Container Travel Pac Total indirect costs allocated / Number of unis ndirect cost per unit Requirement 4. Comipare the activity-based costs per unil to the costs fromI lhe original system. How have the unil costs changed? Explain why the cosls changed as they did The original system The original system allocated the commercial containers and the travel packs. .However, commercial containers The ABC system 50, relative to the Original system, ABC allocates | of the material handling and quality assurance costs to commercial