(Please put the answer in the tables like the questions)

Corbett 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. Corbertt'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. Round dollar amounts to two decimal places.)

Requirement 2. Compute the predetermined overhead allocation rate for each activity.

Begin by selecting the formula to calculate the predetermined overhead (OH) allocation rate. Then enter the amounts to compute the allocation rate for each activity. (Abbreviation used: qty = quantity. Round your answers to the nearest whole dollar.)

Requirement 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.)

Begin by selecting the formula to allocate overhead (OH) costs.

Compute the total activity-based costs allocated to commercial containers, and then compute the cost per unit for commercial containers. Finally, compute the total activity-based costs allocated to travel packs then compute the cost per unit for travel packs. (Round the cost per unit to two decimal places.)

Requirement 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.

Relative to activity-based costing (ABC), the traditional system (over-costs,under-costs)

the commercial containers and

(over-costs,under-costs)the travel packs.

Part 11

The traditional system allocates overhead costs solely on (kilos handled,machine hours,

samples tested)Activity-based costing (ABC) recognizes that although commercial containers require ( fewer,more)machine hours per unit than travel packs, they (do not require, require)the same proportion of material handling and quality assurance.

Data table Requirements 1. Corbertt's onginal single plantwide overhead allocation rate costing system allocated indirect costs to products at $81.50 per machine hour. Compute the total indirect coss 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 predetemined overhead allocation rate for each activity. 3. Use the predetemined overhead allocation rates to compute the activity-based costsper unit of the commercial containers and the travel packs. Round to two decimal places (Hint Firs compute the total activity-based costs allocated to each product line, and then compute the cost per unit.) 4. Compare the indirect activity-based costsper unit to the indirect costs per unit from the traditional system. How have the unit costs changed? Explain why the costs changed. Requirem ent 2. Compute the predetem ined overhead allocation rate for each activity. Begin by selecting the formula to calculate the predetermine Zerhead (OH) allocation rate. Then enter the amounts to compute the Compute the total activity-based coss allocated to commercial containers, and then compute the cost per unit for commer Requirement 3. Use the predetemined ovemead allocation rates to compute the activity-based costs per unit of the commercial contair Begin by selecting the formula to allocate ovemead (OH) costs