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.

Cost Driver Activity Cost

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 HiTech's pool rate for the automated machinery activity?

A) $24.00 per machine hour.

B) $24.50 per labor hour.

C) $49.42 per unit.

D) $50.00 per machine hour.

E) A rate other than those listed above.