Jones Manufacturing Has Used Activity Based Costing to Assign Costs

Jones manufacturing has used activity based costing to assign costs to Models X and Y as given in the table below:
$\begin{array}{lrr}& \text { ModelX } & \text { ModelY } \\\text { Units produced } & 24,000 & 30,000 \\\text { Machine hours } & 7,500 & 8,500 \\\text { Direct labour hours } & 8,000 & 12,000 \\\text { Material handling (number of moves) } & 4,000 & 6,000 \\\text { Setups } & 5,000 & 7,000 \\\text { Purchase orders } & 30 & 40 \\\text { nspections } & 10,000 & 14,000 \\\text { Product line variatinns. } & 8 & 12\end{array}$
The following overhead costs are reported for the following activities of the production process:
$\begin{array}{lr}\text { Material handling } & \$ 40,000 \\\text { Labour-related overhead } & 120,000 \\\text { Setups } & 60,000 \\\text { Product design } & 100,000 \\\text { Batch inspections } & 120,000 \\\text { Central purchasing } & 70,000\end{array}$ Jones manufacturing has used activity based costing to assign costs to Models X and Y as given in the table below:
$\begin{array}{|l|r|r|r|r|r|r|r|r|}\hline\text { Activity } & \text { Cost } & & \text { Pool } & \text { Model } & \text { Model X } & \text { Model } & \text { Model Y } \\&\text { Pool } & \text { Driver } & \text { Rate } & \text { X }& \text { Cost } & \text { Y } & \text { Cost } & \text { Total } \\&&&&\text { Activity } & & \text { Activity } & &\\\hline \begin{array}{l}\text { Material } \\\text { handling }\end{array} & \$ 40,000 & 10,000 & \$ 4 & 4,000 & \$ 16,000 & 6,000 & \$ 24,000 & \$ 40,000 \\\hline \begin{array}{l}\text { Labour- } \\\text { related } \\\text { overhead }\end{array} & \$ 120,000 & 20,000 & \$ 6 & 8,000 & \$ 48,000 & 12,000 & \$ 72,000 & \$ 120,000 \\\hline \text { Setups } & \$ 60,000 & 12,000 & \$ 5 & 5,000 & \$ 25,000 & 7,000 & \$ 35,000 & \$ 60,000 \\\hline \begin{array}{l}\text { Product } \\\text { design }\end{array} & \$ 100,000 & 20 & \$ 5,000 & 8 & \$ 40,000 & 12 & \$ 60,000 & \$ 100,000 \\\hline \begin{array}{l}\text { Batch } \\\text { inspections }\end{array} & \$ 120,000 & 24,000 & \$ 5 & 10,000 & \$ 50,000 & 14,000 & \$ 70,000 & \$ 120,000 \\\hline \begin{array}{l}\text { Central } \\\text { purchasing }\end{array} & \$ 70,000 & 70 & \$ 1,000 & 30 & \$ 30,000 & 40 & \$ 40,000 & \$ 70,000 \\\hline \text { Total } & & & & & \$ 209,000 & & \$ 301,000 & \$ 510,000\\\hline\end{array}$ Jones Manufacturing wants to implement an approximately relevant ABC system by using the two most expensive activities for cost assignment.
-Refer to the figure.Under this new approach,which activities would be selected as the cost pools?

A) materials handling and labour related
B) labour related and batch inspections
C) batch inspections and central purchasing
D) materials handling and central purchasing