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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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