Please answer complete question otherwise skip it strictly, Please provide answer in text (Without image) Jacobson Pharmaceuticals manufacturers an over-the-counter allergy medication. The company sells both largecommercial 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 systemwould be beneficial:(Click the icon to view the information.)Read the requirements.Requirement 1. Jacobson's original single plantwide overhead allocation rate costing system allocated indirect costs toproducts at $140.00 per machine hour. Compute the total indirect costs allocated to the commercial containers and tothe travel packs under the original system. Then compute the indirect cost per unit for each product. Round to twodecimal places.Select the formula, and then enter the amounts to compute the indirect cost per unit for each product. (Abbreviationused: mfg. = manufacturing. Round dollar amounts to two decimal places.)Data tableActivityMaterials handlingPackagingQuality assuranceTotal indirect costsRequirements1.4.CEstimatedIndirect Costs Allocation Base96,000 Number of kilos210,000 Number of machine hours114,000 Number of samples420,000$$Units producedWeight in kilosMachine hoursNumber of samplesActual production information includes the following:Commercial Containers3,000 containers9,0002,250600= Indirect cost per unitEstimated Quantity ofAllocation Base1,900 samplesTravel Packs24,000 kilos3,000 hours51,000 packs5,100510765Jacobson's original single plantwide overhead allocation rate costing system allocated indirectcosts to products at $140.00 per machine hour. Compute the total indirect costs allocated to thecommercial containers and to the travel packs under the original system. Then compute theindirect 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 ofthe commercial containers and the travel packs. Round to two decimal places. (Hint: Firstcompute the total activity-based costs allocated to each product line, and then compute the costper unit.)Compare the indirect activity-based costs per unit to the indirect costs per unit from thetraditional system. How have the unit costs changed? Explain why the costs changed.

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1. Jacobson's original single plantwide overhead allocation rate costing system allocated indirect costs to products at $140.00 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. 3. Compute the predetermined overhead allocation rate for each activity. 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.)

1. Jacobson's original single plantwide overhead allocation rate costing system allocated indirect costs to products at $140.00 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. 3. Compute the predetermined overhead allocation rate for each activity. 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.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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