3. McCaskey Corporation uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool Fabrication..40,000 machine-hours Order processing... Total Activity 500 orders Not applicable The Other activity cost pool is used to accumulate costs of idle capacity and organization-sustaining costs The company has provided the following data concerning its costs: Wages and salaries....$420,000 Depreciation100,000 120.000 $640,000 Occupancy The distribution of resource consumption across activity cost pools is given below: Wages and salaries... Depreciation. Occupancy.. Fabrication 5% 15% 25% Activity Cost Pools Order Processing 80% 45% 50% Other 15% 40% 25% Total 100% 100% 100% The activity rate for the Fabrication activity cost pool is closest to: A. $0.80 per machine-hour B. $1.65 per machine-hour C. $4.00 per machine-hour D. $2.40 per machine-hour