Gizmo Company, a manufacturer of small appliances, had the following activities, allocated costs, and allocation bases:
What is the cost per hour for the account inquiry activity? (Round your answer to the nearest cent.)
A) $0.58
B) $39.50
C) $8.33
D) $2.11
B) $39.50
Explanation: Total cost of account inquiry $79,000
Quantity of allocation base (hours) 2000
Cost of account inquiry per hour ($79,000 / 2000) $39.50
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