1. Samsung Electronics and LG Electronics allocate their manufacturing overhead costs using activity-based costing. The following table summarizes the costs and cost drivers:

Activity	Samsung Total Cost ($)	Cost Driver	Cost Driver Quantity	LG Total Cost ($)
Setup	$1,600,000	Number of setups	1,600 setups	$1,400,000
Machining	$3,800,000	Machine hours	140,000 hours	$3,300,000
Quality Control	$2,200,000	Number of inspections	18,000 inspections	$1,900,000
Total	$7,600,000			$6,600,000

• Calculate the manufacturing overhead rate for each activity for Samsung Electronics and LG Electronics.
• Allocate manufacturing overhead costs per unit using activity-based costing for both companies.
• Compare how differences in setup costs impact Samsung's and LG's manufacturing efficiency and cost structure.
• Discuss the implications of quality control costs on product quality and brand reputation for Samsung and LG.