Allocate overhead costs using activity rates for different cost pools.

Activity	Cost ($)	Activity Driver	Driver Quantity
Order processing	$60,000	Number of orders	1,200 orders
Customer support	$80,000	Hours of support	8,000 hours
Inventory management	$100,000	Number of SKUs	500 SKUs

Requirements:

Calculate the activity rate for each cost pool using ABC.

Allocate overhead costs to products A, B, and C based on activity usage.

Discuss the benefits of using ABC compared to traditional costing methods in the retail industry.