Activity-Based Costing at Procter & Gamble

Values:

• Total Overhead: $2,500,000
• Activity 1: 15,000 units, $1,000,000
• Activity 2: 25,000 units, $1,500,000

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.