Allocate overhead costs using activity rates for different cost pools.

Activity	Cost	Activity Driver	Driver Quantity
Setup activities	$80,000	Number of setups	800 setups
Machine processing	$300,000	Machine hours	15,000 hours
Quality control	$50,000	Number of inspections	2,000 inspections

• Requirements:
  1. Calculate the activity rate for each cost pool using ABC.
  2. Allocate overhead costs to products A, B, and C based on activity usage.
  3. Discuss the advantages of using ABC for cost allocation.