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	$	90,000			8,000			11,000			22,000
Activity 2	$	65,000			9,000			17,000			10,000
Activity 3	$	122,000			4,500			3,000			3,625

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 $2.20.

• The activity rate under the activity-based costing system for Activity 2 is $10.97.

• The activity rate under the activity-based costing system for Activity 2 is $1.81.

• The activity rate under the activity-based costing system for Activity 2 is $14.97.

• The activity rate under the activity-based costing system for Activity 2 is $3.62.