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

Multiple Choice

Selena 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: $\begin{array}{lrr}&\text { Estimated}&& \text { Expected Activity }\\\text { Activity Cost Pool }&\text { cost }&\text { ProductA}&\text { Product B}&\text { Total }\\ \text {Activity 1. } &£ 17,600& 800 & 300 &1,100\\ \text { Activity 2. } &£ 12,000 & 500 & 200 &700\\ \text { Activity 3.} &£ 26,000 &800 &400&1,200\\\end{array}$

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

A) £46.33.
B) £21.67.
C) £65.00.
D) £18.53.