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) $2.00; (2) $3.00; (3) $3.50.

• (1) $3.50; (2) $1.50; (3) $32,80.

• (1) $3.50; (2) $3.00; (3) $16.00.

• (1) $2.00; (2) $1.50; (3) $16.00.

• (1) $2.00; (2) $1.50; (3) $32.80.