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	375	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	$	513,000
Depreciation		123,000
Occupancy		155,000
Total	$	791,000

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

	Activity Cost Pools
	Fabricating	Order Processing	Other	Total
Wages and salaries	25%	60%	15%	100%
Depreciation	15%	25%	60%	100%
Occupancy	30%	50%	20%	100%

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

Noreen 4e Rechecks 2017-24-03

$1.60 per machine-hour

$3.20 per machine-hour

$6.44 per machine-hour

$6.59 per machine-hour