Drewry Company makes two products: Product A and Product B. Annual production and sales are 1,700 units of Product A and 1,100 units of Product B. The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products. 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: The predetermined overhead rate (i.e., activity rate) for Activity 1 under the activity-based costing system is closest to