Adelberg Company has two products: A and B. The annual production and sales of Product A is 2,600 units and of Product B is 2,000 units. The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products. Product A requires 0.3 direct labor-hours per unit and Product B requires 0.6 direct labor-hours per unit. The total estimated overhead for next period is $108,775. 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: Estimated Expected Activity Activity Cost Pools Overhead Costs Product A Product B Total Activity 1 $ 33,611 1,900 1,500 3,400 Activity 2 19,144 2,600 1,100 3,700 Order Size 56,020 780 1,200 1,980 Total $ 108,775 (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: rev: 03_25_2018_Q