Requirement 3: Use the predetermined overhead allocation rates to compute the activity-based cost 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.)

Options are: over-cost, under-cost

The traditional systems allocates overhead costs solely on ________ Activity-based coating (ABC) recognizes that although commercial containers require _____ machine hours per unit than travel packs, they ______ the same proportions of material handling and quality assurance.

Options are: 1. Kilos handled, machine hours or samples tested. 2. Fewer, more 3. Do not require, require

Data Table Estimated Quantity of Allocation Base 19,000 kilos 5,000 hours Estimated Indirect Costs Allocation Base Activity Materials handling $ Packaging Quality assurance Total indirect costs 95,000 Number of kilos 200,000 Number of machine hours 112,500 Number of samples 407,500 1,875 samples Actual production information includes the following: ma Commercial Containers Travel Packs 50,000 packs Units produced Weight in kilos Machine hours Number of samples 3,500 containers 10,500 2,450 5,000 500 750 de cos 350 -Allocated mfg overhead costs ed to commercial containers, and then compute the cost per unit for commercial containers. Firna Actual overhead costs Actual qty of the allocation base used Estimated overhead costs ontainers Travel packs Estimated oty of the allocation base Predetermined OH allocation rate Commercial containers Travel packs Materials handling Packaging Quality assurance Total activity-based costs Number of units Activity-based cost per unit Compare the indirect activity based costs per unit to the indirect costs per unit fom the tradtional system How have the unt costs changed? Explan why the cests changed quiremment 4 atve to actuty-based costing (ADC) the tradtional system the commercial contaners and the travel packs Data Table Estimated Quantity of Allocation Base 19,000 kilos 5,000 hours Estimated Indirect Costs Allocation Base Activity Materials handling $ Packaging Quality assurance Total indirect costs 95,000 Number of kilos 200,000 Number of machine hours 112,500 Number of samples 407,500 1,875 samples Actual production information includes the following: ma Commercial Containers Travel Packs 50,000 packs Units produced Weight in kilos Machine hours Number of samples 3,500 containers 10,500 2,450 5,000 500 750 de cos 350 -Allocated mfg overhead costs ed to commercial containers, and then compute the cost per unit for commercial containers. Firna Actual overhead costs Actual qty of the allocation base used Estimated overhead costs ontainers Travel packs Estimated oty of the allocation base Predetermined OH allocation rate Commercial containers Travel packs Materials handling Packaging Quality assurance Total activity-based costs Number of units Activity-based cost per unit Compare the indirect activity based costs per unit to the indirect costs per unit fom the tradtional system How have the unt costs changed? Explan why the cests changed quiremment 4 atve to actuty-based costing (ADC) the tradtional system the commercial contaners and the travel packs