Caddo Corp. has the following overhead cost pools and cost drivers:

Reno Co$.$ placed an order for $800$ units of Caddo's product. This order consumed:

$12$ Setups

$550$ pounds $($lb$.)$ of material

$18$ inspections

a$.$ Calculate the ABC rate for each Overhead Cost Pool.

b$.$ Using ABC costing, calculate the total overhead is allocated to Reno's order.

c$.$ What operating decisions can be improved when using Activity Based Costing in an organization?