Gizmo Company,a Manufacturer of Small Appliances,had the Following Activities,allocated Costs,and

Multiple Choice

Gizmo Company,a manufacturer of small appliances,had the following activities,allocated costs,and allocation bases: $$\begin{array} { | l | l | l | } \hline \text { Activities } & \text { Allocated Costs } & \text { Allocation Base } \\\hline \text { Account inquiry (hours) } & \$ 68,000 & 2600 \text { hours } \\\hline \text { Account billing (lines) } & \$ 34,000 & 17,000 \text { lines } \\\hline \text { Account verification (accounts) } & \$ 18,000 & 20,000 \text { accounts } \\\hline \text { Correspondence (letters) } & \$ 10,000 & 1400 \text { letters } \\\hline\end{array}$$ The above activities are carried out at two of its regional offices.
$$\begin{array} { | l | l | l | } \hline \text { Activities } & \text { Northeast Office } & \text { Midwest Office } \\\hline \text { Account inquiry (hours) } & 100 \text { hours } & 250 \text { hours } \\\hline \text { Account billing (lines) } & 16,000 \text { lines } & 3000 \text { lines } \\\hline \text { Account verification (accounts) } & 1900 \text { accounts } & 700 \text { accounts } \\\hline \text { Correspondence (letters) } & 50 \text { letters } & 140 \text { letters } \\\hline\end{array}$$ What is the cost per hour for the account inquiry activity? (Round your answer to the nearest cent.)

A) $0.90
B) $26.15
C) $7.14
D) $2.00