Question: Needing help in advanced managerial accounting. Please help 7. (20 points) Crescent Pharmaceuticals manufactures an over-the-counter allergy medication. Th commercial containers of 1,000 capsules to

Needing help in advanced managerial accounting. Please help

Needing help in advanced managerial accounting. Please help 7. (20 points) Crescent

7. (20 points) Crescent Pharmaceuticals manufactures an over-the-counter allergy medication. Th commercial containers of 1,000 capsules to health care facilities and travel packs of 20 capsules t and hotels. The following information has been developed to determine if an activity-based costi Actual production information includes the following: a. Compute the activity-based indirect cost per unit for commercial containers and travel packs. S b. Assume that, traditionally, the company allocated total indirect (overhead) costs using a single containers and travel packs using the traditional system. Show your analysis below: c. Compare the indirect cost/unit under the activity-based system with the indirect costs/unit un Explain. ounter allergy medication. The company sells both large d travel packs of 20 capsules to shops in airports, train stations, mine if an activity-based costing system would be beneficial: Units produced Weight in kilos Machine hours Number of samples Commercial 4,000 16,000 3,500 700 containers and travel packs. Show your analysis below. overhead) costs using a single indirect cost driver: machine hours. Calculate the indirect cost/unit for commercial analysis below: with the indirect costs/unit under the traditional system. Which system more accurately allocates indirect costs? /unit for commercial ates indirect costs? Travel packs 54,000 8,000 640 1375

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