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

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Accounting

Hochberg 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 125 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 $ 486,000
Depreciation 149,000
Occupancy 134,000
Total $ 769,000

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

Activity Cost Pools
Fabricating Order Processing Other Total
Wages and salaries 5% 75% 20% 100%
Depreciation 10% 30% 60% 100%
Occupancy 10% 70% 20% 100%

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

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