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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: (Click the icon to view the information.) Read the requirements. 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. Commercial containers =Indirectcostperunit== Travel packs Requirement 2. Compute the predetermined overhead allocation rate for each activity. 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. 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 The traditional system allocates overhead costs solely on travel packs, they the commercial containers and Activity-based costing (ABC) recognizes that although commercial containers require the travel packs. the same proportion of material handling and quality assurance. machine hours per unit than Data table

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