1. Activity-Based Costing (ABC) and Cost Allocation: Calculate the cost per unit using ABC for a product with the following activity cost pools: setup costs $14,000 for 70 setups, machining costs $28,000 for 1,400 machine hours, and inspection costs $7,000 for 700 inspections. If the product requires 4 setups, 20 machine hours, and 3 inspections, what is the cost per unit? Discuss the advantages of using ABC over traditional costing methods.