Markhom Company makes two products Basic Product and Delbe Product. Annual production and sales are 2.400 units of Basic Product and 2000 units of Deluxe Product. The company has traditionally used direct labor hours as the basis for applying all manufacturing overhead to products Basic Product regules 0.2 direct labor hours per unit and Deluxe Product requires 06 direct labor hours per unit. The total estimated overhead for next period is $99.785. The company is considering switching to an activity-based costing system for the purpose of computing unit product costs for extemal reports. The new activity based costing system would have three overhead activity cost pools-Activity Activity 2. and General Factory with estimated overhead costs and expected activity as follows: Activity Cost Pool Activity 1 Activity 2 General Factory Total Estimated Overhead Costs $30,768 17,685 51,332 $99,785 Expected Activity Basic Deluxe Product Product Total 1,700 650 2,350 1,900 450 2,350 720 1.200 1,920 (Note: The General Factory costs are allocated on the basis of direct labor hours) The predetermined overhead rate le activity rate) for Activity 2 under the activity based costing system is closest to