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 $68,000 2,600 hours Account inquiry (number of hours) Account billing (number of lines) Account verification (number of accounts) $34,000 17,000 lines $18,000 20,000 accounts Correspondence (number of letters) $10,000 1,400 letters During the month, the Northeast Office used 100 hours and the Midwest Office used 250 hours on account inquiries. What is the activity rate that would be used to assign account inquiry costs to these offices? (Round your answer to the nearest cent.) A. $26.15 B. $2.00 OC. $7.14 OD. $0.90 Little Rock, Inc. makes three products: A, B, and C. The firm's manufacturing operations are mechanized, and there is no direct labor. Manufacturing overhead costs are significant, so Little Rock uses activity-based costing. Direct materials costs per unit for each model are: Product A $22 per unit Product B $31 per unit Product C $38 per unit Little Rock has three activities: assembly, materials management, and testing. The cost driver for assembly is machine hours, the cost driver for materials management is the number of parts, and the cost driver for testing is the number of units of product. Estimated costs and production volumes for the year are: Estimated Cost Estimated Cost Driver Assembly $784,000 122,500 MH Materials management $132,000 88,000 parts Testing $26,000 5,200 units Product A requires 12 parts and 20 machine hours of processing. What is the manufacturing cost to make one unit of Product A? (Round any intermediate calculations to the nearest cent, and your final answer to the nearest dollar.) O A. $173 OB. $45 OC. $168 OD. $151