PepsiCo allocates overhead using multiple cost drivers. In December 2043, the following data is provided:

• Activity 1: Bottling Hours (100,000 hours, $1,000,000)
• Activity 2: Delivery Miles (500,000 miles, $2,000,000)
• Activity 3: Quality Control (30,000 hours, $600,000)

Requirements:

• Allocate overhead costs to each activity.
• Calculate the cost per activity driver.
• Prepare a cost report for a specific product.
• Discuss the benefits of using multiple cost drivers for overhead allocation.