A retail chain operates several stores in different locations. The following data pertains to one of its stores:

• Total overhead costs: $500,000
• Activity cost pools and cost drivers:
  • Store setup: Number of new store openings
  • Customer service: Number of customer interactions
  • Inventory management: Total inventory value
• Activity levels:
  • Store setup: 2 new store openings
  • Customer service: 100,000 customer interactions
  • Inventory management: $1,000,000 total inventory value

a. Calculate the activity rates for each activity cost pool. b. Assign overhead costs to the store using ABC. c. Discuss how the information obtained from ABC can aid in decision-making for the retail chain.