Adelberg Company has two products: A and B$.$ The annual production and sales of Product A is $500$ units and of Product B is $1,000$ units. The company has traditionally used direct labor$-$hours as the basis for applying all manufacturing overhead to products. Product A requires $0\mathrm{.}4$ direct labor$-$hours per unit and Product B requires $0\mathrm{.}2$ direct labor$-$hours per unit. The total estimated overhead for next period is $$68,756.$

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 Order Size$--$with estimated overhead costs and expected activity as follows:

Activity Cost Pools Estimated Overhead Cost Expected Activity

Product A Product B Total

Activity $1$ $ $31,0311,0003001,300$

Activity $222,2491,6003001,900$

Order size $15,476200200400$

Total $ $68,756$

$($Note: The Order Size 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:

Multiple Choice

$$13\mathrm{.}91$

$$11\mathrm{.}71$

$$74\mathrm{.}16$

$$36\mathrm{.}19$