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

Activity	General Motors Total Cost ($)	Cost Driver	Cost Driver Quantity	Toyota Total Cost ($)
Setup	$1,200,000	Number of setups	1,000 setups	$1,000,000
Machining	$2,500,000	Machine hours	100,000 hours	$2,200,000
Quality Control	$1,500,000	Number of inspections	15,000 inspections	$1,300,000
Total	$5,200,000			$4,500,000

• Calculate the manufacturing overhead rate for each activity for General Motors and Toyota.
• Allocate manufacturing overhead costs per unit using activity-based costing for both companies.
• Compare how differences in setup costs impact General Motors' and Toyota's manufacturing efficiency.