Pfizer allocates overhead to its pharmaceutical production using activity-based costing. In December 2041, the following data is provided:

• Activity 1: Machine Hours (30,000 hours, $900,000)
• Activity 2: Labor Hours (15,000 hours, $450,000)
• Activity 3: Batch Setup (100 setups, $300,000)

Requirements:

• Allocate overhead costs to each activity.
• Calculate the cost per activity driver.
• Prepare a report on the cost per unit for a specific product.
• Analyze the benefits of using ABC over traditional costing methods.