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

  Activity	Total Cost ($)	Cost Driver	Cost Driver Quantity
  Activity 1	10,000	Units Produced	5,000
  Activity 2	8,000	Number of Customers	100
  Activity 3	12,000	Machine Hours	2,000

  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.