Alexander Inc

Multiple Choice

Alexander Inc. uses activity-based costing. The company produces two products: Snaps and Pops. The expected annual production of Snaps is 1,500 units, while the expected annual production of Pops is 2,200 units. There are three activity cost pools: Assembly, Testing, and Packing. The estimated costs and activities for each of these three activity pools follows: The cost pool activity rate for Testing would be

A) $21.43 per activity.
B) $13.90 per activity.
C) $39.56 per activity.
D) $6.95 per activity.