HiTech 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	$278,000	Number of parts
Material insertion	3,450,000	Number of parts
Automated machinery	868,000	Machine hours
Finishing	237,000	Direct labor hours
Packaging	237,000	Orders shipped
Total	$5,070,000

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

	Economy	Standard	Deluxe
Units to be produced	19,200	3,100	2,700
Orders to be shipped	1,620	930	250
Number of parts per unit	5	10	15
Machine hours per unit	1	2	5
Labor hours per unit	2	2	2

What is HiTech's pool rate for the finishing activity closest to?

$4.74 per labor hour.

A rate other than those listed above.

$7.24 per unit.

$4.74 per machine hour.

$4.74 per unit.