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

Multiple Choice

Anola 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: $\begin{array}{lrr}&\text { Estimated}& \text {Expected Activity }\\\text { Activity CostPool }&\text { Cost }& \text {ProductA}&\text { Product B}&\text { Total }\\ \text {Activity 1 } &£ 18,000&300 &200 &500\\\\ \text { Activity 2. } &£ 16,000& 500 & 100 &600\\\\ \text { Activity 3 } &£ 27,000& 600 &300 & 900\\\end{array}$

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

A) £30.00.
B) £30.50.
C) £90.00.
D) £67.78.