Nick Company has two products: A and B. The company uses activity-based costing. The estimated total cost and expected activity for each of the company's three activity cost pools are as follows:

Expected Activity

Activity           Cost Pool    Estimated Costs      Product A     Product B       Total

Activity                    1            $32,600          700                           300            1,000

Activity                    2             $17,600          600                          200               800

Activity                    3              $52,500         400                          100               500

The activity rate under the activity-based costing system for Activity 3 is closest to:

	a.	$44.65
	b.	$105.00
	c.	$525.00
	d.	$205.00