Adelberg Company has two products: A and B. The annual production and sales of Product A is 2.200 units and of Product B is 1,600 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 $104,375. 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 Overhead Costs $ 32,252 18,370 53,753 $ 104,375 Expected Activity Product A Product B 1,500 1,100 700 880 1,120 Total 2,600 2,900 2,200 2,000 (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 o $6.33 O $35.99 $46.34 O O $8.35