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 $77,000 6,700 9,700 20,700 Activity 2 $52,000 7,700 15,700 8,700 Activity 3 $96,000 3,200 1,700 2,325 Which of the following statements is true regarding this company's activity rates? Multiple Choice The activity rate under the activity based costing system for Activity 2 is $2.08 The activity rate under the activity-based costing system for Activity 2 is $13.29 The activity rate under the activity based costing system for Activity 2 is $162 Next >