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

What are the activity rates for the three activities under activity-based costing?

Multiple Choice

• (1) $3.50; (2) $3.00; (3) $16.00.
• (1) $2.00; (2) $1.50; (3) $32.80.
• (1) $3.50; (2) $1.50; (3) $32,80.
• (1) $2.00; (2) $1.50; (3) $16.00.
• (1) $2.00; (2) $3.00; (3) $3.50.