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

Activity Cost Pool	Total Activity
Fabrication	40,000	machine-hours
Order processing	500	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	$	469,000
Depreciation		191,000
Occupancy		120,000
Total	$	780,000

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

	Activity Cost Pools
	Fabricating	Order Processing	Other	Total
Wages and salaries	20%	60%	20%	100%
Depreciation	20%	25%	55%	100%
Occupancy	20%	45%	35%	100%

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

$3.90 per machine-hour

$2.25 per machine-hour

$0.65 per machine-hour

$4.88 per machine-hour