Arthur Company has two products: S and D. The company uses activity-based costing and has prepared...

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Arthur Company has two products: S and D. The company uses activity-based costing and has prepared the following analysis, showing the estimated total overhead cost and expected activity for each of its three activity cost pools: Expected Activity Activity Cost Estimated Pool Cost Product S Product D Total Activity 1 $20,000 100 400 500 Activity 2 14,600 500 250 750 Activity 3 90,000 300 2,700 3,000 The annual production and sales of Product S is 4,547 units. The annual production and sales of Product D is 7,913. Direct costs/unit for each product are as follows: Product S Direct Material $1.50 Product D $1.20 $2.50 Direct Labour $2.00 The activity rate under the activity-based costing system for Activity 3 is closest to which of the following? Arthur Company has two products: S and D. The company uses activity-based costing and has prepared the following analysis, showing the estimated total overhead cost and expected activity for each of its three activity cost pools: Expected Activity Activity Cost Estimated Pool Cost Product S Product D Total Activity 1 $20,000 100 400 500 Activity 2 14,600 500 250 750 Activity 3 90,000 300 2,700 3,000 The annual production and sales of Product S is 4,547 units. The annual production and sales of Product D is 7,913. Direct costs/unit for each product are as follows: Product S Direct Material $1.50 Product D $1.20 $2.50 Direct Labour $2.00 The activity rate under the activity-based costing system for Activity 3 is closest to which of the following?