1. A firm provides limousine services for foreign dignitaries. This firm is adopting activity-based costing. It has decided upon four activity cost pools and activity drivers.

   #1 Planning (planner hours)

   #2 Travel & Security (miles driven)

   #3 Dignitary Services (customization requests)

   #4 Other (none)

   The firm budgets the following overhead costs.

   Drivers and security guard salaries: $1,000,000

   Permitting fees and background checks: $250,000

   Vehicle costs: $1,500,000

   Administrative costs: $175,000

   Activity-based costing consultants have determined that these resources are consumed by the firm's activities as follows.

   	Planning	Travel & Security	Dignitary Services	Other
   Drivers and security guard salaries	10%	70%	20%	0%
   Permitting fees and background checks	50%	10%	20%	20%
   Vehicle costs	10%	50%	40%	0%
   Administrative costs	40%	10%	10%	40%

   Which of the following is TRUE?

   	a.	The budgeted Dignitary Services activity cost pool is $667,500
   	b.	The budgeted Planning activity cost pool is $445,000.
   	c.	The budgeted overhead cost that would generally be allocated to services is $2,925,000.
   	d.	The budgeted Travel & Security activity cost pool is $2,500,000.