McCaskey Corporation uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool Total Activity Fabrication............. 40,000 machine-hours Order Processing ..... 500 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.. $420,000 Depreciation............. 100,000 Occupancy ..... 120,000 Total.............. $640,000 The distribution of resource consumption across activity cost pools is given below: Activity Cost Pools Fabrication Order Processing Other Wages and salaries.. 5% 80% 15% Depreciation............. 15% 45% 40% Occupancy ..... 25% 50% 25% The activity rate for the Fabrication activity cost pool is closest to: a. $1.65 per machine-hour b. $4.00 per machine-hour c. $0.80 per machine-hour d. $2.40 per machine-hour