Grover,Inc

Multiple Choice

Grover,Inc. Grover,Inc.purchased a crane at a cost of $80,000.The crane has an estimated residual value of $5,000 and an estimated life of 8 years,or 12,500 hours of operation.The crane was purchased on January 1,2013 and was used 2,700 hours in 2013 and 2,600 hours in 2014.
Refer to the information about Grover,Inc.
If Grover uses the units-of-production method,what is the depreciation rate per hour for the equipment?

A) $4.00
B) $5.00
C) $6.00
D) $7.50