A company uses activity based costing to determine the costs of its three products: A B and C. The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table: Activity Cost Pool Activity 1 Activity 2 Activity 3 Budgeted cost $ 85,000 $ 60,000 $112,000 Budgeted Activity Product A Product B Product 7,500 10,500 21,500 8,500 16,500 9,500 2,500 3,125 Which of the following statements is true regarding this company's activity rates