The activity rate for Activity 2 is closest to 1 answer below »

Abbe Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 800 units and of Product B is 600 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

$17,460

600

600

1,200

Activity 2

$19,987

1,700

600

2,300

Activity 3

$29,884

400

120

520

The activity rate for Activity 2 is closest to:

A) $11.76

B) $8.69

C) $29.27

D) $33.31