Hisaishi Corporation uses an activity-based costing system with the following three activity cost pools:

Activity Cost Pool Total Activity

Fabrication 80,000 machine-hours

Order processing 400 orders

Others 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 $460,000

Depreciation 180,000

Occupancy 200,000

Total $840,000

The distribution of resource consumption across activity cost pools is given below:

Activity Cost Pools

Fabrication, Order Processing ,Others ,Total

Wages and salaries 5% , 80% ,15% ,100%

Depreciation 15% , 40% , 45% ,100%

Occupancy 15% , 50% , 35% ,100%

The activity rate for the Fabrication activity cost pool is closest to:

1) $1 per machine-hour

2) $0.66 per machine-hour

3) $10.50 per machine-hour

4) $1,350 per machine-hour