McCaskey Corporation uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool Total Activity Fabrication 20,000 machine-hours Order processing 250 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 $489,000 Depreciation 148,000 Occupancy 192,000 Total $829,000 The distribution of resource consumption across activity cost pools is given below: Activity Cost Pools Fabrication Order Processing Other Total Wages and salaries 20% 60% 20% 100% Depreciation 25% 30% 45% 100% Occupancy 10% 65% 25% 100% The activity rate for the Fabrication activity cost pool is closest to: $1.01 per machine-hour $7.70 per machine-hour $2.61 per machine-hour $10.36 per machine-hour