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Business, 31.03.2020 04:27 reesespowerade

Jennifer 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:

Estimated Expected Activity
Activity Cost Pools Overhead
Cost Product A Product B Total
Product design $23,500 400 100 500
Assembling $18,000 500 200 700
Supporting customers $34,600 600 300 900

The activity rate under the activity-based costing system for Supporting customers is closest to:
A. $36.24
B. $38.44
C. $84.56
D. $115.33

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