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	$340,000
Depreciation	160,000
Occupancy	220,000
Total	$720,000

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

	Activity Cost Pools
	Fabrication	Order Processing	Other	Total
Wages and salaries	25%	60%	10%	100%
Depreciation	20%	50%	35%	100%
Occupancy	15%	55%	30%	100%

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

	A.	$5.30 per machine-hour
	B.	$3.60 per machine-hour
	C.	$7.20 per machine-hour
	D.	$5.00 per machine-hour