The Kenobi Dragon Calls Company budgets $1,000,000 for supervisor salary cost and $2,000,000 for maintenance cost. These are the only overhead costs the firm expects to incur.

The firm uses activity-based costing with this percentage table for these three activity cost pools. The firm will split up its budgeted overhead costs among the three activity cost pools as follows.

Activity Cost Pool	Preparations	Execution	Other
Supervisor Salaries	50%	20%	30%
Maintenance Cost	40%	60%	0%

Which of the following is TRUE?

a. The Preparations cost pool is $1,400,000.
	b. The percentages in the table above are irrelevant to the firm's activity-based costing system.
	c. The Execution cost pool is $1,300,000.
	d. $300,000 of these costs are period costs that would NOT be applied to jobs or inventory.