Help Seve & Submit Markham Company makes two products: Basic Product and Deluxe Product. Annual production and sales are 1,800 units of Basic Product and 1400 units of Deluxe Product. The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products. Basic Product requires 0.3 direct labor hours per unit and Deluxe Product requires 0.6 direct labor hours per unit. The total estimated overhead for next period is $99,585 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 poals--Activity 1, Activity 2, and General Factory--with estimated overhead costs and expected activity as follows: Estimated Expected Activity Overhead Basic Deluxe Activity Cost Pool Product Product Total Activity 1 $30, 720 1,300 600 1,900 Activity 2 17,625 1,900 250 2,150 General Factory 51,240 540 1,380 Total $99,585 Costs 840 (Note: The General Factory costs are allocated on the basis of direct labor hours) The predetermined overhead rate (.e., activity rate) for Activity 2 under the activity based costing system is closest to: Multiple Choice $9.79 Total $99,585 (Note: The General Factory 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 sy Multiple Choice $9.79 $8.20 $46.32 $72.16