Abel Corporation Uses Activity-Based Costing

Multiple Choice

Abel Corporation uses activity-based costing. The company makes two products: Product A and Product B. The annual production and sales of Product A is 200 units and of Product B is 400 units. There are three activity cost pools, with total cost and activity as follows: The activity rate for Activity 2 is closest to:

A) $24.91
B) $26.36
C) $16.77
D) $10.25