Abraham Company Uses Activity-Based Costing

Multiple Choice

Abraham Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 200 units and of Product B is 1,000 units. There are three activity cost pools, with total costs and activity as follows:
-The activity rate for Activity 2 is closest to:

A) $22.04
B) $117.55
C) $37.97
D) $18.56