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	$281,000	Number of parts
Material insertion	3,060,000	Number of parts
Automated machinery	873,000	Machine hours
Finishing	194,000	Direct labor hours
Packaging	194,000	Orders shipped
Total	$4,602,000

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

	Economy	Standard	Deluxe
Units to be produced	14,300	9,700	2,600
Orders to be shipped	1,910	580	270
Number of parts per unit	15	20	25
Machine hours per unit	1	2	5
Labor hours per unit	3	3	3

What is HiTech's pool rate for the material-handling activity closest to?

$7.03 per part.

$0.59 per part.

$1.31 per part.

A rate other than those listed above.

$3.52 per labor hour.