Activity-Based Costing at Facebook

Values:

Activity	Units Produced	Overhead Cost
Activity 1	50,000 units	$2,500,000
Activity 2	70,000 units	$4,500,000

Requirements:

1. Allocate the overhead costs using activity-based costing.
2. Determine the cost per unit for each activity.
3. Compare these costs to traditional costing methods.
4. Discuss the advantages of using ABC in Facebook.