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

Activity Cost Pool	Total Activity
Fabrication	20,000	machine-hours
Order processing	250	orders
Other	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	$	487,000
Depreciation		154,000
Occupancy		146,000
Total	$	787,000

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

	Activity Cost Pools
	Fabricating	Order Processing	Other	Total
Wages and salaries	10%	60%	30%	100%
Depreciation	15%	30%	55%	100%
Occupancy	20%	65%	15%	100%

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

Noreen 4e Rechecks 2017-24-03

$5.05 per machine-hour

$9.84 per machine-hour

$1.51 per machine-hour

$3.11 per machine-hour