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	$70,000	6,000	9,000	20,000
Activity 2	$45,000	7,000	15,000	8,000
Activity 3	$82,000	2,500	1,000	1,625

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

A)The activity rate under the activity-based costing system for Activity 2 is $2.00.

B)The activity rate under the activity-based costing system for Activity 2 is $16.00.

C)The activity rate under the activity-based costing system for Activity 2 is $1.50.

D)The activity rate under the activity-based costing system for Activity 2 is $19.50.

E)The activity rate under the activity-based costing system for Activity 2 is $2.81.