Arthur Company has two products: S and D. The company uses activity-based costing and has prepared the following analysis showing the estimated total cost and expected activity for each of its three activity cost pools:Activity Cost PoolsEstimated Overhead CostExpected Activity??Product SProduct DTotalActivity 1$20,000 100400500Activity 2$14,600 500250750Activity 3$90,000 3002,7003,000The annual production and sales of Product S is 4,547 units. The annual production and sales of Product D is 7,913.The activity rate under the activity-based costing system for Activity 3 is closest to:
A. $41.53
B. $29.32
C. $30.00
D. $33.33
Answer: C
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