Gregory Enterprises has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year: Cost Pool Overhead Costs Supervision of direct labor $320,000 Machine maintenance $120,000 $200,000 Facility rent Total overhead costs $640,000 Cost driver Direct labor-hours Machine-hours Square feet of area Activity level 960,000 The accounting records show the Mossman Job consumed the following resources: Actual level 200 Cost driver Direct labor-hours Machine-hours Square feet of area 1,600 50 Which method of allocation probably best estimates actual overhead costs used? Why? A) Single direct labor-hours cost driver because it is best to allocate total costs uniformly to Individual jobs. B) Three activity-cost drivers because product costs can be significantly cross-subsidized. C) Three activity-cost drivers because they best reflect the relative consumption of resources. D) Single direct labor-hours cost driver because it is easiest to analyze and Interpret.