1. Procter & Gamble and Unilever allocate their manufacturing overhead costs using activity-based costing. The following table summarizes the costs and cost drivers:

Activity	Procter & Gamble Total Cost ($)	Cost Driver	Cost Driver Quantity	Unilever Total Cost ($)
Setup	$1,800,000	Number of setups	1,800 setups	$1,600,000
Machining	$3,500,000	Machine hours	120,000 hours	$3,000,000
Quality Control	$2,000,000	Number of inspections	20,000 inspections	$1,800,000
Total	$7,300,000			$6,400,000

• Calculate the manufacturing overhead rate for each activity for Procter & Gamble and Unilever.
• Allocate manufacturing overhead costs per unit using activity-based costing for both companies.
• Compare how differences in setup costs impact Procter & Gamble's and Unilever's manufacturing efficiency.