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

question 58

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Selena 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:  Estimated Expected Activity  Activity Cost Pool  cost  ProductA Product B Total Activity 1. £17,6008003001,100 Activity 2. £12,000500200700 Activity 3.£26,0008004001,200\begin{array}{lrr}&\text { Estimated}&& \text { Expected Activity }\\\text { Activity Cost Pool }&\text { cost }&\text { ProductA}&\text { Product B}&\text { Total }\\ \text {Activity 1. } &£ 17,600& 800 & 300 &1,100\\ \text { Activity 2. } &£ 12,000 & 500 & 200 &700\\ \text { Activity 3.} &£ 26,000 &800 &400&1,200\\\end{array}

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


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