During January, DAC Inc. produced 5,000 units of product with costs as follows:

H-Tech 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	Overhead 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 labour hours
Packaging	170,000	Orders shipped
	$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
Labour hours per unit	2	2	2

What is H-Techs activity rate for packaging?

At the end of January, there were 1,000 units of the product left in closing inventory. What is the value of closing inventory under variable costing?

1.$100.00 per order

2.$10.00 per order

3.$1.00 per order

4.$1,000.00 per order