In $2023,$ Home $1\text{'}$s manufacturing division incurred $$300,000$ in fuel costs. The company wants to use Activity$-$Based Costing $($ABC$)$ to allocate these costs across its facilities: the Bottling Plant, the Processing Plant, and the Filling Plant. The data related to fuel consumption and other factors is as follows:

Facility

Fuel Consumed $($tons$)$

Weight $($lbs$)$

Fuel Cost $($$$)$

Bottling Plant

$3,000$

$20,000$

$$30,000$

Processing Plant

$4,500$

$15,000$

$$45,000$

Filling Plant

$2,500$

$25,000$

$$25,000$ What is Activity$-$Based Costing $($ABC$)$ and why is it used by Home $1$ to allocate fuel costs?