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

Activity Cost Pool	Total Activity
Fabrication	60,000	machine-hours
Order processing	750	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	$471,000
Depreciation	167,000
Occupancy	190,000
Total	$828,000

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

	Activity Cost Pools
	Fabrication	Order Processing	Other	Total
Wages and salaries	10%	80%	10%	100%
Depreciation	10%	40%	50%	100%
Occupancy	10%	60%	30%	100%

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

$1.38 per machine-hour

$0.37 per machine-hour

$3.45 per machine-hour

$1.97 per machine-hour