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	$	225,000		Number of parts
Material insertion		2,475,000		Number of parts
Automated machinery		840,000		Machine hours
Finishing		170,000		Direct labor hours
Packaging		170,000		Orders shipped
Total	$	3,880,000

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

	Economy				Standard				Deluxe
Units to be produced		10,000				5,000				2,000
Orders to be shipped		1,000				500				200
Number of parts per unit		10				15				25
Machine hours per unit		1				3				5
Labor hours per unit		2				2				2

What is Barnetts pool rate for the finishing activity?

• $5.00 per labor hour.

• $5.00 per machine hour.

• $5.00 per unit.

• $7.50 per unit.

• None of the answers is correct.