1. General Motors (GM) and Ford Motor Company allocate their manufacturing overhead costs using activity-based costing. The following table summarizes the costs and cost drivers:

Activity	GM Total Cost ($)	Cost Driver	Cost Driver Quantity	Ford Total Cost ($)
Setup	$1,000,000	Number of setups	1,000 setups	$900,000
Production Hours	$2,500,000	Machine hours	100,000 hours	$2,200,000
Quality Assurance	$1,200,000	Inspections	10,000 inspections	$1,000,000
Total	$4,700,000			$4,100,000

• GM produced 500,000 vehicles, and Ford produced 600,000 vehicles during the year.
• Allocate manufacturing overhead costs per vehicle for GM and Ford using activity-based costing.
• Discuss how differences in setup costs impact GM's and Ford's manufacturing efficiency and cost competitiveness.