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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 costing system would be beneficial Click the icon to view the information) Read the requirements Requirement 1. Gibson's original single plantwide overhead allocation rate conting som allocated indirect contato products at $154 88 per machine hout Compute the total indirect conts allocated to the commercial containers and to the travel packs under the original system. Then compute the indirect cont 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 Data table Activity Materials handling Packaging Quality assurance Estimated Indirect Costs Allocation Base $ 98,000 Number of kilos 209,000 Number of machine hours 124,500 Number of samples S 431,500 Estimated Quantity of Allocation Base 24,500 kilos 2,786 hours 2,075 samples Total indirect costs Actual production information includes the following: Commercial Containers 2 500 containers 12.500 1.750 Travel Packs 56,000 packs 11.200 Units produced Weight in kilos Machine hours Number of samples 560 840 250 1 Requirements 1. Gibson's original single plantwide overhead allocation rate costing system allocated indirect costs to products at $154.88 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. 2. Compute the predetermined overhead allocation rate for each activity 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) 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

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