Apex Manufacturing produces two products: Alpha and Beta. The following cost information is provided:

• Alpha: Direct materials - $100,000, Direct labor - $50,000, Overhead - $30,000
• Beta: Direct materials - $120,000, Direct labor - $60,000, Overhead - $40,000

The company uses activity-based costing (ABC) to allocate overhead costs. The total overhead cost is $70,000, and the activity cost drivers are machine hours and labor hours. The activity cost driver rates are $10 per machine hour and $20 per labor hour. Alpha uses 3,000 machine hours and 1,500 labor hours, while Beta uses 4,000 machine hours and 2,000 labor hours.

Requirement: Calculate the total cost for each product using ABC and discuss the benefits of using activity-based costing over traditional costing methods.

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