UUUJUI 29 (of 30) 29. A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table: Product C Activity Cost Pool Activity 1 Activity 2 Activity 3 Budgeted Cost $85,000 $60,000 $112,000 Budgeted Activity Product A Product B 7,500 10,500 8,500 16,500 4,000 2,500 21,500 9,500 3,125 Which of the following statements is true regarding this company's activity rates? The activity rate under the activity-based costing system for Activity 2 is $2.15. The activity rate under the activity-based costing system for Activity 2 is $11.64. The activity rate under the activity-based costing system for Activity 2 is $1.74. The activity rate under the activity-based costing system for Activity 2 is $15.53. The activity rate under the activity-based costing system for Activity 2 is $3.42