1. Intel Corporation and AMD allocate their manufacturing overhead costs using activity-based costing. The following table summarizes the costs and cost drivers:

Activity	Intel Total Cost ($)	Cost Driver	Cost Driver Quantity	AMD Total Cost ($)
Setup	$1,000,000	Number of setups	1,000 setups	$900,000
Production Hours	$2,400,000	Machine hours	90,000 hours	$2,100,000
Quality Assurance	$1,300,000	Number of inspections	10,000 inspections	$1,100,000
Total	$4,700,000			$4,100,000

• Intel produced 800,000 units, and AMD produced 900,000 units during the year.
• Allocate manufacturing overhead costs per unit for Intel and AMD using activity-based costing.
• Discuss how differences in production hours impact Intel's and AMD's manufacturing efficiency and cost competitiveness.