A company uses activity-based costing. They company has three porducts and sues three activity cost pools
to allocate overhead costs to each product. The estimated total costs, expected activity, and the units are as
follows:
		Expected Activity
Activity Cost Pool	Esitmated Overhead Costs	Product . A	Product B	Product C
machine hours	$ 20,400	500	400	300
Labor hours	$ 35,310	10,000	4,400	7,000
Number or setup	$ 34,000	5	3	9
annual unit		10,000	15,000	22,000
What is the activity rate per labor hour for the labor hours activity cost pool?
$ 8.03
$ 2.35
$ 17.00
$ 1.65