McCaskey 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	N/A

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	$458,000
Depreciation	130,000
Occupancy	157,000
Total	$745,000

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

	Activity Cost Pools
	Fabrication	Order Processing	Other	Total
Wages and salaries	15%	80%	5%	100%
Depreciation	25%	30%	45%	100%
Occupancy	20%	60%	20%	100%

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

$4.42 per machine-hour

$6.21 per machine-hour

$1.10 per machine-hour

$2.70 per machine-hour