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	$	82,000			7,200			10,200			21,200
Activity 2	$	57,000			8,200			16,200			9,200
Activity 3	$	106,000			3,700			2,200			2,825

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 $2.12.

• The activity rate under the activity-based costing system for Activity 2 is $12.15.

• The activity rate under the activity-based costing system for Activity 2 is $1.70.

• The activity rate under the activity-based costing system for Activity 2 is $15.97.

• The activity rate under the activity-based costing system for Activity 2 is $3.30.