Tesla, Inc. allocates overhead costs using activity-based costing (ABC) and traditional costing methods. Given the following data for the production of electric vehicles:

• Direct Materials: $300,000
• Direct Labor: $200,000
• Overhead Costs: $100,000
• Number of Vehicles Produced: 1,000 Calculate the overhead cost per unit using both ABC and traditional costing methods. Analyze the differences in cost per unit and discuss the advantages and disadvantages of each costing approach.