Procter & Gamble uses operating costing for its consumer goods manufacturing. In February 2034, the company incurs the following costs:

• Manufacturing Overhead: $30 million
• Distribution Expenses: $20 million
• Administrative Costs: $15 million

Additional information:

• Manufacturing Overhead is allocated based on machine hours (50,000 hours).
• Distribution Expenses are allocated based on units shipped (1 million units).
• Administrative Costs are allocated based on square footage of office space (100,000 square feet).

Required:

• Allocate overhead costs to manufacturing, distribution, and administrative activities.
• Determine the cost per unit and per square foot of office space.
• Analyze the cost structure and profitability of Procter & Gamble's operations.