A company uses activity-based costing. Budgeted overhead cost and activity usage follows. The overhead activity rate for

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A company uses activity-based costing. Budgeted overhead cost and activity usage follows.

Activity Activity 1 Activity 2 Activity 3 Budgeted Overhead $19,800 16,000 14,000 Budgeted Activity Usage

The overhead activity rate for Activity 3 is
a. \(\$4.00\) per \(\mathrm{MH}\).

c. \(\$18.00\) per \(\mathrm{MH}\).

b. \(\$8.59\) per \(\mathrm{MH}\).

d. \(\$20.00\) per \(\mathrm{MH}\).

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