Aggie, inc. purchased a truck at a cost of $12,000. the truck has an estimate salvage value of $2,000 and an estimated life of 5 years, or 100,000 hours of operation. The truck was purchased on January 1, 2011, and was used 27,000 hours in 2011 and 26,000 hours in 2012. If Aggie uses the units-of-activity method. what is the depreciation rate per hour for the equipment?

a. $1.00

b. $1.10

c. $.10

d. $.12