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Paul 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

Paul 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:

Activity Cost Pool

Est. Cost

Product A

Product B

Total

Activity 1

$22,000

400

100

500

Activity 2

16,240

380

200

580

Activity 3

14,600

500

250

750

The activity rate under the activity-based costing system for Activity 3 is closest to which of the following?

Select one:

a. $28.87.

b. $70.45.

c. $58.40.

d. $19.47.

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