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

Activity cost pool Total activity

Fabrication 50,000 machine hours

Order processing 500 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:

Cost data

Wages and salaries $280,000

Depreciation $200,000

Occupancy $140,000

Total $620,000

Activity Cost Pools

Wages and salaries 60% 30% 10% 100%

Depreciation 20% 35% 45% 100%

Occupancy 10% 50% 40% 100%

Fabrication Processing Other Total

The activity rate for the fabrication activity cost pool is closest to _____ per machine hour.





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