• Allocate costs to cost objects using the activity-based costing (ABC) system for LMN Corporation using the following data:

  Activity	Cost Driver	Total Cost ($)
  Setup	Number of setups	$20,000
  Quality Control	Number of inspections	$30,000
  Machine Hours	Machine hours	$40,000

  Requirements:

  • Allocate costs to cost objects using the ABC system.
  • Present the allocation in a detailed table format.
  • Discuss the advantages of using activity-based costing for cost allocation.