1.A running shoe manufacturer produces three types of shoes: traditional, minimalist, and spikes.

The company uses the following information to determine activity rates for each pool:

Cost PoolCostsTotal Activity

Shoe Production$250,00020,000 pairs of shoes

Shoe batches$10,000500 batches

Shoe design$5,000100 parts

Total$265,000

Data concerning the three shoe products appear below:

Cost Driver # of pairs of shoes # of batches # of parts

Traditional 10,000 150 20

Minimalist 7,500 250 30

Spikes 2,500 100 50

What is the total amount of overhead applied to spikes shoes?

a.$265,000

b.$100,250

c.$35,750

d.$31,250