Adams Company has two products: A and B. The annual production and sales of Product A is 2,250 units and of Product B is 1,650 units. The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products. Product A requires 0.5 direct labor-hours per unit and Product B requires 0.8 direct labor-hours per unit. The total estimated overhead for next period is $104,900. The company is considering switching to an activity-based costing system for the purpose of computing unit product costs for external reports. The new activity-based costing system would have three overhead activity cost pools--Activity 1, Activity 2, and General Factory--with estimated overhead costs and expected activity as follows:

Activities Cost Pools	Estimated Overhead Costs		Expected Activity
			Product A	Product B	Total
Activity 1	$32,414		1,550	1,150	2,700
Activity 2	18,462		2,250	750	3,000
General Factory	54,024		1,115	1,320	2,435
Total	$104,900

(Note: The General Factory activity cost pool's costs are allocated on the basis of direct labor-hours.)

The predetermined overhead rate (i.e., activity rate) for Activity 2 under the activity-based costing system is closest to:

$6.15

$34.97

$44.38

$8.21