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: $$\begin{array} { | l | l | l | } \hline { \text { Activities } } & \text { Allocated Costs } &{ \text { Allocation Base } } \\\hline \text { Account inquiry (hours) } & \$ 79,000 & 2000 \text { hours } \\\hline \text { Account billing (lines) } & \$ 40,000 & 19,000 \text { lines } \\\hline \text { Account verification (accounts) } & \$ 15,000 & 26,000 \text { accounts } \\\hline \text { Correspondence (letters) } & \$ 10,000 & 1200 \text { letters } \\\hline\end{array}$$ The above activities are carried out at two of its regional offices.
$$\begin{array} { | l | l | l | } \hline { \text { Activities } } & \text { Northeast Office } & \text { Midwest Office } \\\hline \text { Account inquiry (hours) } & 160 \text { hours } & 250 \text { hours } \\\hline \text { Account billing (lines) } & 10,000 \text { lines } & 2000 \text { lines } \\\hline \text { Account verification (accounts) } & 1800 \text { accounts } & 650 \text { accounts } \\\hline \text { Correspondence (letters) } & 90 \text { letters } & 150 \text { letters } \\\hline\end{array}$$ What is the cost per hour for the account inquiry activity? (Round your answer to the nearest cent.)

A) $0.58
B) $39.50
C) $8.33
D) $2.11