Question: 2. Townsend Building Company decides to begin using the ABC method. The company has identified three activity cost pools and their related activity drivers

2. Townsend Building Company decides to begin using the ABC method. The

2. Townsend Building Company decides to begin using the ABC method. The company has identified three activity cost pools and their related activity drivers for each cost pool. Based on the following information, compute the activity rate for each cost pool: Activity Cost Pool Design changes Setups Plant services Overhead Costs Number of Activities $ 500,000 5 Designs $1,500,000 $1,000,000 100 Batches 25,000 Square feet Design Setups Plant changes Services a. $600,000 $30,000 $120,000 b. $50,000 $15,000 $120,000 C. $100,000 $15,000 $40 d. $50,000 $15,000 $40,000 e. None of the above.

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