g Hochberg Corporation uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool Total Activity Fabrication 30,000 machine-hours Order processing 375 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 $ 423,000 Depreciation 112,000 Occupancy 154,000 Total $ 689,000 The distribution of resource consumption across activity cost pools is given below: Activity Cost Pools Fabricating Order Processing Other Total Wages and salaries 10% 70% 20% 100% Depreciation 10% 40% 50% 100% Occupancy 20% 60% 20% 100% The activity rate for the Fabrication activity cost pool is closest to:
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