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:

	$2.61 per machine-hour
	$10.36 per machine-hour
	$7.70 per machine-hour
	$1.01 per machine-hour