Jennifer Company Has Two Products: a AndB The Activity Rate Under the Activity-Based Costing System for Activity

Multiple Choice

Jennifer Company has two products: A andB. 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. $\begin{array}{lrr}&\text { Estimated}& \text {Expected Activity }\\\text { Activity CostPool }&\text { Cost }& \text {ProductA}&\text { Product B}&\text { Total }\\ \text {Activity 1 } &£ 23,500&400 &100 & 500\\\\ \text { Activity 2. } &£ 18,000& 500 & 200 &700\\\\ \text { Activity 3 } &£ 34,600& 600 & 300 & 900\\\end{array}$

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

A) £36.24.
B) £38.44.
C) £84.56.
D) £115.33.