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A company uses activity-based costing to determine the costs of its two products: A and...

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Accounting

A company uses activity-based costing to determine the costs of its two products: A and B. The budgeted cost and activity for each of the company's three activity cost pools follow:

Cost Pool Budgeted Cost Product A Product B Total
Activity 1 $19,800 800 300 1,100
Activity 2 $16,000 2,200 1,800 4,000
Activity 3 $14,000 400 300 700

What is the activity rate under the activity-based costing method for Activity 3?

Group of answer choices

a. $4.00

b. $8.59

c. $18.00

d. $20.00

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