1. Boeing and Airbus allocate their manufacturing overhead costs using activity-based costing. The following table summarizes the costs and cost drivers:

Activity	Boeing Total Cost ($)	Cost Driver	Cost Driver Quantity	Airbus Total Cost ($)
Setup	$2,000,000	Number of setups	2,000 setups	$1,800,000
Machining	$4,500,000	Machine hours	150,000 hours	$4,000,000
Quality Control	$3,000,000	Number of inspections	25,000 inspections	$2,500,000
Total	$9,500,000			$8,300,000

• Calculate the manufacturing overhead rate for each activity for Boeing and Airbus.
• Allocate manufacturing overhead costs per unit using activity-based costing for both companies.
• Compare how differences in setup costs impact Boeing's and Airbus's manufacturing efficiency and cost structure.
• Discuss the implications of quality control costs on product reliability and customer satisfaction for Boeing and Airbus.