A material removal tool with a cutting insert mounted in the seating pocket is disclosed. The translating bar is operably connected to the at least one radially pivotable arm by a mechanical linkage and translates under fluid pressure applied to one side of a piston head by an actuating fluid, where the actuating fluid is also coolant for the material removal tool. With the translating bar in a first position, the radially outermost edge of the cutting insert is radially inward from the first active volume, and with the translating bar in a second position, the radially outermost portion of the cutting insert is radially outward from the first active volume and the axially rearmost portion of the cutting insert is rearward of an axially rearmost portion of the arm. A method of removing material from a workpiece with the material removal tool, such as by backboring, is also disclosed.