Please See files attached below

Anola 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	Estimated Cost	Expected Level of Activity Driver
Product A	Product B	Total
Activity 1.........	$18,000	300	200	500
Activity 2.........	$16,000	500	100	600
Activity 3.........	$27,000	600	300	900

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

[Remember, if you want to compute an ABC rate you divide total estimated costs for an activity by total estimated cost driver. If a company has 2 products and the estimated driver (say # of setups) for each is given for each product, you have to add them together for the denominator. You have one rate for each pool, regardless of the number of products.]

a.	$30.00
b.	$30.50
c.	$90.00
d.	$15.00
e.	$67.78