10 po QUESTION 5 Phoenix, Inc. uses activity-based costing and had the following estimated activity data for its Billing Department for the year Activities Estimated Costs Estimated Activity Account inquiry (number of hours) $79.000 3,000 hours Account billing (number of lines) $81,000 17,000 lines Account verification (number of accounts) $12,000 25.000 accounts Correspondence (number of letters) $11,000 1,400 letters During the month, the Northeast Office processed 60 letters and the Midwest Office processed 110 letters. What is the activity rate that would be used to assign correspondence costs to these offices? (Round your answer to the nearest cent.) A. $22.14 8. $3.67 C.S0.48 OD$7.86