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Hochberg Corporation uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool Total Activity Fabrication 30,000 machine- hours Order processing

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Hochberg Corporation uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool Total Activity Fabrication 30,000 machine- hours Order processing 300 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 Depreciation Occupancy Total $340,000 160,000 220.000 $720,000 The distribution of resource consumption across activity cost pools is given below: Total Activity Cost Pools Order Fabrication Other Processing Wages and salaries 30% 60% 10% Depreciation 15% 50% 35% Occupancy 15% 5596 30% The activity rate for the Fabrication activity cost pool is closest to: $5.30 per machine-hour $7.20 per machine-hour $4.80 per machine-hour $3.60 per machine-hour 100% 100% 100%

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