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

activity cost pools total activity

fabrication 10000 machine hours

order processing 800 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 - $320000

depreciation - 220000

occupancy - 120000

total - $660000

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

activity cost pools

orders

fabrication processing other total

wages and salaries 20% 65% 15% 100%

depreciation 15% 35% 50% 100%

occupancy 5% 75% 25% 100%

$3.30 per machine hour

$13.20 per machine hour

$10.30 per machine hour

$8.80 per machine hour