Barnett Products manufactures three types of remote-control devices: Economy, Standard, and Deluxe. The company, which uses activity-based costing, has identified five activities (and related cost drivers). Each activity, its budgeted cost, and related cost driver is identified below.

Activity	Cost			Cost Driver
Material handling	$	228,000		Number of parts
Material insertion		2,481,000		Number of parts
Automated machinery		843,000		Machine hours
Finishing		176,000		Direct labor hours
Packaging		176,000		Orders shipped
Total	$	3,904,000

The following information pertains to the three product lines for next year:

	Economy				Standard				Deluxe
Units to be produced		10,600				5,600				2,600
Orders to be shipped		1,060				560				260
Number of parts per unit		16				21				31
Machine hours per unit		7				9				11
Labor hours per unit		8				8				8

What is Barnetts pool rate for the material-insertion activity?

• $6.75 per part.

• $30.78 per part.

• $9.66 per labor hour.

• $7.00 per part.

• None of the answers is correct.