Microsoft Corporation needs to allocate overhead costs to its products using Activity-Based Costing (ABC). The following information is available:

Activity	Cost ($)	Cost Driver	Driver Quantity
Machine Setup	80,000	Number of Setups	50
Quality Control	120,000	Number of Inspections	300
Packaging	60,000	Number of Units	20,000

Required:

1. Calculate the overhead rate for each activity.
2. Allocate the overhead costs to Product A (15 setups, 100 inspections, 5,000 units) and Product B (35 setups, 200 inspections, 15,000 units).
3. Determine the total cost for Product A and Product B.
4. Analyze how Activity-Based Costing improves cost accuracy compared to traditional costing.