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

Multiple Choice

Nick 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: $\begin{array}{lrr}&\text { Estimated}&& \text { Expected Activity }\\\text { Activity Cost Pool }&\text { cost }&\text { ProductA}&\text { Product B}&\text { Total }\\ \text {Activity 1. } &£ 32,600& 700 & 300 &1,000\\ \text { Activity 2. } &£ 17,600 & 600 & 200 &800\\ \text { Activity 3.} &£52,500 &400 &100&500\\\end{array}$


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

A) £525.00.
B) £44.65.
C) £105.00.
D) £205.00.