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

Activity Cost Pool	Total Activity
Fabrication	50,000	machine-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	$461,000
Depreciation	123,000
Occupancy	207,000
Total	$791,000

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

	Activity Cost Pools
	Fabrication	Order Processing	Other	Total
Wages and salaries	15%	65%	20%	100%
Depreciation	15%	40%	45%	100%
Occupancy	20%	75%	5%	100%

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

$2.58 per machine-hour

$0.88 per machine-hour

$3.96 per machine-hour

$2.48 per machine-hour