Abrams Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 300 units and of Product B is 1,000 units. There are three activity cost pools, with estimated costs and expected activity as follows:
Expected Activity
Activity Cost Pool
Estimated Cost
Product A
Product B
Total
Activity 1
$7,356
200
200
400
Activity 2
$30,555
1,400
700
2,100
Activity 3
$16,169
90
300
390
The activity rate for Activity 3 is closest to:
A) $53.906
B) $138.67
C) $41.46
D) $18.71