1. A manufacturing company adopts ABC for cost management: Manufacturing ($400,000, 500 projects), Research & Development ($300,000, 200 projects), Customer Service ($200,000, 300 customers).
   • Requirements:
     • Calculate the activity rate for each cost pool using ABC.
     • Allocate costs to different departments based on activity usage.
     • Prepare a cost allocation report showing allocated costs for each department.
     • Recommend strategies to optimize resource allocation based on ABC insights.
     • Discuss the benefits of ABC in enhancing cost management practices.