XYZ Manufacturing produces three products: M, N, and O. The following data is provided:

Activity	Cost ($)	Cost Driver	Product M	Product N	Product O
Machine setups	40,000	Number of setups	10	20	30
Quality inspections	30,000	Number of inspections	5	15	25
Material handling	20,000	Number of movements	10	20	30

Required: a. Calculate the cost per activity for each cost driver. b. Determine the total cost assigned to each product using activity-based costing. c. Compare the costs assigned using ABC with traditional costing (assume overheads are allocated based on direct labor hours: 600 hours for Product M, 500 hours for Product N, and 400 hours for Product O). d. Discuss the benefits and challenges of implementing activity-based costing.