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Compute the activity rate under the activity-based costing

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Reference no: EM132530526

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

Question 1: The activity rate under the activity-based costing system for Activity 3 is closest to which of the following?

Select one:

Option a. $28.87.

Option b. $70.45.

Option c. $58.40.

Option d. $19.47.

Reference no: EM132530526

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