A company uses activity-based costing to determine the costs of its two products: A and B. The budgeted cost and activity for each of the company's three activity cost pools follow:

Cost Pool	Budgeted Cost	Product A	Product B	Total
Activity 1	$19,800	800	300	1,100
Activity 2	$16,000	2,200	1,800	4,000
Activity 3	$14,000	400	300	700

What is the activity rate under the activity-based costing method for Activity 3?

Group of answer choices

a. $4.00

b. $8.59

c. $18.00

d. $20.00