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

Multiple Choice

Khalika 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: $\begin{array}{lrr}&\text { Estimated}&& \text { Expected Activity }\\\text { Activity Cost Pool }&\text { cost }&\text { ProductA}&\text { Product B}&\text { Total }\\ \text {Activity 1. } &£ 16,800& 100 & 700 &800\\ \text { Activity 2. } &£ 22,000 & 200 & 800 &1,00\\ \text { Activity 3.} &£ 34,300 &500 &600&1,100\\\end{array}$


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

A) £31.18.
B) £25.21.
C) £57.17.
D) £66.45.