1. Using an activity-based costing system, how should a company determine the number of cost drivers (activities) to use in allocating costs to products and departments?

2.Imagine you are a CEO of a bakery company that has decided to implement an activity-based costing system to better allocate associated costs of producing loafs of bread, packaged rolls, and packaged crescents. What rate allocation method would you use (plantwide or departmental)? Why would you choose that method over the other?