7. 11.45 Alamo Power historically allocates IDC for its safety program to generation facilities in cities A and B based on the number of employees. Last year, $300,000 was distributed and the employee count was 800 in city A and 450 in city B. Implementation of the ABC method took place this year to allocate IDC on the basis of number of accidents. City A reported 325 events and city B had 142 accidents reported. Determine the following:

1. Cost driver for the ABC method 2. Allocation based on number of employees 3. Allocation based on number of accidents 4. The number of accidents per employee and its impact on the ABC allocation to the cities