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Walsh 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

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Walsh 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 320,000 Depreciation 220,000 Occupancy 120,000 Total 660,000 The distribution of resource consumption across activity cost poo's is given below Activity Cost Pools Assembly Setting Up Other Total Wages and saaresl 20% 6596115 p096 | 50% | 100% 35% Depreciation 15% Utiities 5% 70% 5 00% The activity rate for the Fabrication activity cost poo is closest to: Se ect one: .$8.80 per machine-hour o. $13.20 per machine-hour c $3.30 per machineehour o. $10.30 per machine-hour

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