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 $ 232,000 Number of parts

Material insertion 2,489,000 Number of parts

Automated machinery 847,000 Machine hours

Finishing 184,000 Direct labor hours

Packaging 184,000 Orders shipped

Total $ 3,936,000

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

Economy Standard Deluxe

Units to be produced 11,400 6,400 3,400

Orders to be shipped 1,140 640 340

Number of parts per unit 24 29 39

Machine hours per unit 15 17 19

Labor hours per unit 16 16 16

What is Barnett's pool rate for the material-insertion activity?

Multiple Choice

$4.21 per part.

$18.77 per part.

$6.03 per labor hour.

$15.00 per part.

None of the answers is correct.