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 Product B Product C 9,000 20,000 15,000 8,000 1,000 1,625 Activity Activity 1 Activity 2 Budgeted Cost Activity Cost Driver Product A $ 70,000 Square feet 6,000 $ 45,000 Activity 3 $ 82,000 Units inspected Setups 7,000 2,500 What are the activity rates for the three activities under activity-based costing? Multiple Choice (1) $2.00 per square foot; (2) $3.00 per unit; (3) $3.50 per setup. (1) $2.00 per square foot; (2) $1.50 per unit; (3) $32.80 per setup. (1) $2.00 per square foot; (2) $1.50 per unit; (3) $16.00 per setup.