Gizmo Company,a Manufacturer of Small Appliances,had the Following Activities,allocated Costs,and

question 51

Multiple Choice

Gizmo Company,a manufacturer of small appliances,had the following activities,allocated costs,and allocation bases: $$\begin{array} { | l | l | l | } \hline { \text { Activities } } & \text { Allocated Costs } &{ \text { Allocation Base } } \\\hline \text { Account inquiry (hours) } & \$ 79,000 & 2000 \text { hours } \\\hline \text { Account billing (lines) } & \$ 40,000 & 19,000 \text { lines } \\\hline \text { Account verification (accounts) } & \$ 15,000 & 26,000 \text { accounts } \\\hline \text { Correspondence (letters) } & \$ 10,000 & 1200 \text { letters } \\\hline\end{array}$$ The above activities are carried out at two of its regional offices.
$$\begin{array} { | l | l | l | } \hline { \text { Activities } } & \text { Northeast Office } & \text { Midwest Office } \\\hline \text { Account inquiry (hours) } & 160 \text { hours } & 250 \text { hours } \\\hline \text { Account billing (lines) } & 10,000 \text { lines } & 2000 \text { lines } \\\hline \text { Account verification (accounts) } & 1800 \text { accounts } & 650 \text { accounts } \\\hline \text { Correspondence (letters) } & 90 \text { letters } & 150 \text { letters } \\\hline\end{array}$$ 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

---

Definitions:

Viewer Profiles

Information and data collected about viewers or users that describe their habits, preferences, and demographic details to inform content creation, marketing strategies, and personalized experiences.

Digital Technologies

The range of electronic tools, systems, devices, and resources that generate, store, or process data, including social media, online gaming, multimedia, and mobile phones.

Generation Z

The demographic cohort following Generation Y, typically defined as those born from the mid-1990s to the early 2010s, known for being digital natives.

Social Media

Media content used for social interactions such as YouTube, Facebook, and Twitter.