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Gizmo Company, a manufacturer of small appliances, had the following activities, allocated costs, and allocation bases: Allocated Costs Allocation Base $68,000 Activities Account inquiry (hours)

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Gizmo Company, a manufacturer of small appliances, had the following activities, allocated costs, and allocation bases: Allocated Costs Allocation Base $68,000 Activities Account inquiry (hours) Account billing (lines) Account verification (accounts) Correspondence (letters) 2600 hours 17,000 lines $34.000 $18,000 20,000 accounts $10,000 1400 letters The above activities are carried out at two of its regional offices. Northeast Office Activities Midwest Office 100 hours 16,000 lines 250 hours 8000 lines Account inquiry (hours) Account billing (lines) Account verification (accounts) Correspondence (letters) 1900 accounts 700 accounts 50 letters 140 letters What is the cost per hour for the account inquiry activity? (Round your answer to the nearest cent.) $26.15 O $2.00 $0.90 $7.14

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