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:

				Budgeted Activity
Activity Cost Pool	Budgeted Cost			Product A			Product B			Product C
Activity 1	$	84,000			7,400			10,400			21,400
Activity 2	$	59,000			8,400			16,400			9,400
Activity 3	$	110,000			3,900			2,400			3,025

Which of the following statements is true regarding this company's activity rates?

• The activity rate under the activity-based costing system for Activity 2 is $2.14.

• The activity rate under the activity-based costing system for Activity 2 is $11.80.

• The activity rate under the activity-based costing system for Activity 2 is $1.73.

• The activity rate under the activity-based costing system for Activity 2 is $15.66.

• The activity rate under the activity-based costing system for Activity 2 is $3.38.