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

Multiple Choice

Paul 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: $\begin{array}{lrr}&\text { Estimated}& \text {Expected Activity }\\\text { Activity CostPool }&\text { Cost }& \text {ProductA}&\text { Product B}&\text { Total }\\ \text {Activity 1 } &£ 22,000&400 &100 &500\\\\ \text { Activity 2. } &£ 16,240& 380& 200 &580\\\\ \text { Activity 3 } &£14,600& 500 &250 & 750\\\end{array}$

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

A) £70.45.
B) £28.87.
C) £19.47.
D) £58.40.