Adelberg Company has two products: A and B. The annual production and sales of Product A is 1,750 units and of Product B is 1,150 units. The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products. Product A requires 0.4 direct labor-hours per unit and Product B requires 0.7 direct labor-hours per unit. The total estimated overhead for next period is $99,400. 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 Activity 1 Activity 2 Order Size Total Estimated Expected Activity Overhead Costs Product A Product B. Total $ 30,715 17,494 51,191 1,050 1,750. 650 1,700 250 2,000 700 805 1,505 $ 99,400 (Note: The Order Size activity cost pool's costs are allocated on the basis of direct labor-hours.) The predetermined overhead rate (.e., activity rate) for Activity 2 under the activity-based costing system is closest to: Multiple Choice