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Background: ElonMusk, the man who is responsible for revolutionizing the automotivespace is confused. Why you ask?He met with Ms. Static whoexplained to him that under the current allocation system,engineering costs amount to $46,880 per Model S and $15,630 perModel X. Elon responds:"How - Look at the Model X -its freaking awesome and is insanely over engineered. How can itcost leass than our base model?" he decides to hire you as aconsultant to drive transperency into the costs …Problem: Develop ABC to clearthe mess upCost PoolActivity CostsCost DriverDriverMachine Setup$ 360,000Setup Hours 4,000Materials Handling$ 100,000Material (lbs) 20,000Utility$ 40,000Kw/hr 40,000Information by ProductModel SModel XUnits 4,000 20,000Direct Materials$ 42,000$ 54,000Direct Labor$ 24,000$ 40,000Setup Hours 200 240Materials 1,000 3,000Kw/Hr 2,000 4,000iiiKnowing Tesla's business - are there additionalthings that you would look into in cost allocation? (Remember:Tesla has significant costs related to battery, R&D, softwareprogramming, Qaing, etc.)