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: Activity Budgeted Cost Activity Cost Driver Budgeted Activity Product A Product B Product C Activity 1 $ 70,000 Square feet 6,000 9,000 20,000 Activity 2 $ 45,000 Units inspected 7,000 15,000 8,000 Activity 3 $82,000 Setups 2,500 1,000 1,625 What are the activity rates for the three activities under activity-based costing? O (1) $3.50 per square foot; (2) $1.50 per unit: (3) $32,80 per setup. O (1) $2.00 per square foot; (2) $3.00 per unit; (3) $3.50 per setup. O (1) $3.50 per square foot; (2) $3.00 per unit; (3) $16.00 per setup. O (1) $2.00 per square foot; (2) $1.50 per unit; (3) $32.80 per setup. O (1) $2.00 per square foot; (2) $1.50 per unit; (3) $16.00 per setup. 2.5