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

A) $3.30 per machine-hour

B) $13.20 per machine-hour

C) $10.30 per machine-hour

D) $8.80 per machine-hour

29 Tatman Corporation uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool Total Activity Fabrication 10,000 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 $ 320,00 0 220,00 0 Depreciation 120,00 Occupancy 660,00 Total $ The distribution of resource consumption across activity cost pools is given below: Activity Cost Pools Order Processing Other Fabrication Total Wages and salaries 20% 65% 15% 100% Depreciation 15% 35% 50% 100% Occupancy 5% 70% 25% 100%