80.2K

Verified Solution

Link Copied!

Data table I Estimated Indirect Costs Allocation Base Estimated Quantity of 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 Allocation Base 19,000 kilos 5,000 hours he tot 1,875 samples to tw Actual production information includes the following: Units produced Weight in kilos Machine hours Number of samples Commercial Containers Travel Packs 2,800 containers 50,000 packs 8,400 5,000 1,960 500 560 750 Print Done Gibson 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 coating system would be beneficial TT (Click the loon to view the information.) Read the shirements Requirement 1. Gibson's onginal 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 mig, manufacturing Round dollar amounts to two decimal places) Indirect cost per unit

Answer & Explanation Solved by verified expert

See Answer