McCaskey Corporation uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool Total Activity machine- Fabrication 50,000 hours Order processing 625 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 Depreciation Occupancy Total $425,000 133,000 170,000 $728,000 The distribution of resource consumption across activity cost pools is given below: Activity Cost Pools Order Fabrication Processing Other Total Wages and salaries 5% 65% 30% 100% Depreciation 25% 20% 55% 100% Occupancy 5% 65% 30% 100% The activity rate for the Fabrication activity cost pool is closest to: Multiple Choice $1.83 per machine-hour $3.64 per machine-hour $1.26 per machine-hour $0.23 per machine-hour