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Marynight 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

Marynight 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 $ 225,000 Number of parts
Material insertion 2,475,000 Number of parts
Automated machinery 840,000 Machine hours
Finishing 250,000 Direct labor hours
Packaging 170,000 Orders shipped
Total $ 3,960,000

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

Economy Standard Deluxe
Units to be produced 10,000 4,000 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

The pool rate for the automated machinery activity is closest to:

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