Activity rates are determined by a. dividing the actual cost for each activity pool by the actual activity base for that pool b. dividing the cost budgeted for each activity pool by the estimated activity base for that pool c. dividing the cost budgeted for each activity pool by the actual activity base for that pool d. dividing the actual cost for each activity pool by the estimated activity base for that pool

B.dividing the cost budgeted for each activity pool by the estimated activity base for that pool.

Explanation: Product costing is a term used in Manufacturing to describe the process through which the total cost of Manufacturing a product is determined.

Activity based costing is a costing method that gives manufacturers the opportunity to cost the product by determining the cost of each activity involved in the Manufacturing process of that product.

ACTIVITY RATE IS EQUAL TO THE RATIO OF BUDGETED ACTIVITY COST OF THE COST POOL AND THE ESTIMATED OR BUDGETED ACTIVITY BASE OF THE COST POOL.

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