Doede Corporation uses activity$-$based costing to compute product margins. In the first stage, the activity$-$based costing system allocates two overhead accounts$--$equipment depreciation and supervisory expense$--$to three activity cost pools$--$Machining, Order Filling, and Other$--$based on resource consumption. Data to perform these allocations appear below:

Overhead costs:

Equipment depreciation $ $92,000$

Supervisory expense $ $4,000$

Distribution of Resource Consumption Across Activity Cost Pools:

Activity Cost Pools

Machining Order Filling Other

Equipment depreciation $0\mathrm{.}600\mathrm{.}200\mathrm{.}20$

Supervisory expense $0\mathrm{.}300\mathrm{.}200\mathrm{.}50$

In the second stage, Machining costs are assigned to products using machine$-$hours $($MHs$)$ and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products.

Activity:

MHs $($Machining$)$ Orders $($Order Filling$)$

Product W$14,200800$

Product M$015,800200$

Total $20,0001,000$

Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins.

Sales and Direct Cost Data:

Product W$1$ Product M$0$

Sales $($total$)$ $ $236,500$ $ $262,000$

Direct materials $($total$)$ $ $90,900$ $ $123,900$

Direct labor $($total$)$ $ $110,400$ $ $76,100$

The activity rate for the Machining activity cost pool under activity$-$based costing is closest to:

Multiple Choice

$$1\mathrm{.}50$ per MH

$$2\mathrm{.}82$ per MH

$$4\mathrm{.}80$ per MH

$$2\mathrm{.}76$ per MH