Paul Company has two products: A and B. 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:
Activity Estimated Expected Activity
Cost Pool Cost Product A Product B Total
Activity 1 $22,000 400 100 500
Activity 2 $16,240 380 200 580
Activity 3 $14,600 500 250 750
The activity rate under the activity-based costing system is closest to:
a) $70.45.
b) $28.87.
c) $19.47.
d) $58.40.