1. General Electric implements ABC with activities: Machining ($900,000, 15,000 hours), Assembly ($500,000, 10,000 hours), Quality Control ($300,000, 5,000 hours).
   • Requirements:
     • Determine the cost driver rate for each activity.
     • Allocate costs to products A (3,000 hours machining, 2,000 hours assembly) and B (5,000 hours machining, 3,000 hours assembly).
     • Prepare a comparative cost analysis using traditional and ABC methods.
     • Evaluate the impact of ABC on pricing and profitability.