25. Implementing activity-based costing for a service company, the following data is provided:

Activity	Total Cost ($)	Cost Driver	Cost Driver Quantity
Activity 1	25,000	Units Produced	10,000
Activity 2	20,000	Number of Customers	200
Activity 3	30,000	Machine Hours	4,000

Your requirements are as follows:

• Calculate the cost per unit of the cost driver for each activity.
• Assign overhead costs to products using activity rates.
• Present the allocation process in a table format.
• Provide a paragraph discussing the advantages of ABC over traditional costing methods.
• Discuss potential limitations of ABC implementation.
• Include a bullet list of recommendations for implementing ABC effectively.