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Willitte Pharmaceuticals manufacturers an over-the-counter allergy medication. The company sells both large commercial contai
i Data Table Estimated Estimated Quantity Activity Indirect Costs Allocation Base of Allocation Base Materials handling $ 95,
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Answer #1

SOlution 1:

Total indirect cost allocated to Commercial containers = $81.50 * 1680 machine hours = $136,920

Total indirect cost allocated to Travel Packs = $81.50 * 500 machine hours = $40,750

Total Indirect cost allocated / Units produced = indirect cost per unit

Commercial containers: $136920 / 2400 = $57.05

Travel Packs: $40750 / 50000 = $0.82

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