Boatman Bancshares, a banking services company, offers several different types of checking accounts. The bank has recently adopted an activity-based costing system to assign costs to its checking accounts. The following data relate to the Financial Sense checking accounts and the ABC cost pools:

Annual number of accounts = 60,000 accounts

Cost Pool Cost Cost Drivers

Returned check costs $3,000,000 Number of returned checks

Account reconciliation costs 60,000 Number of account reconciliation requests

New account setup 650,000 Number of new accounts

Archive requests 400,000 Number of archive requests

Web site costs 195,000 Per account type

Total checking account costs $4,305,000

Annual activity information related to cost drivers:

Cost Pool All Products Financial Sense Checking

Returned checks 200,000 returned checks 18,000

Account reconciliation costs 3,000 reconciliation requests 420

New account setups 60,000 new accounts 15,000

Archive requests 100,000 archive requests 60,000

Web site costs 10 types of accounts 1

How much is the rate to be used to apply the cost of new accounts to each Financial Sense checking account?

A) $ 43.33

B) $ 10.83

C) $ 60.39

D) $ 71.75