1. ServiceCorp provides two types of services: Service X and Service Y. The company uses activity-based costing with the following information:

Activity	Total Cost	Cost Driver	Cost Driver Quantity
Activity 1	$200,000	Number of clients	1,000 clients
Activity 2	$150,000	Service hours	5,000 hours
Total	$350,000

• Service X serves 300 clients and requires 2,000 service hours.
• Service Y serves 700 clients and requires 3,000 service hours.

a. Allocate service industry costs to Service X and Service Y using activity-based costing. b. Calculate the cost per client and cost per service hour for Service X and Service Y based on the allocated costs. c. Discuss which service incurs higher costs per client and per service hour and explain the implications.