McCaskey Corporation uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool Fabrication Order processing Other Total Activity 30,000 machine-hours 375 orders 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 $490,000 132,000 148,000 $770,000 The distribution of resource consumption across activity cost pools is given below: Activity Cost Pools Order Fabrication Processing Other 5% 70% 25% 15% 35% 50% 25% 55% 20% Wages and salaries Depreciation Occupancy Total 100% 100% 100% The activity rate for the Fabrication activity cost pool is closest to: $2.88 per machine-hour O $2.71 per machine-hour $1.28 per machine-hour O $6.42 per machine-hour