Extreme Manufacturing Company provides the following ABC costing information:

Activities	Total Costs	Activity dash cost drivers
Account inquiry	$800,000	16 comma 00016,000 hours
Account billing	$105,000	7 comma 000 comma 0007,000,000 lines
Account verification accounts	$75,000	40 comma 00040,000 accounts
Correspondence letters	$40,250	7 comma 0007,000 letters
Total costs	$1,020,250

The above activities are used by Departments A and B as follows:

	Department A	Department B
Account inquiry hours	2,800 hours	4 comma 3004,300 hours
Account billing lines	800,000 lines	650 comma 000650,000 lines
Account verification accounts	14,000 accounts	12 comma 00012,000 accounts
Correspondence letters	1,100 letters	1 comma 5001,500 letters

How much of account verification costs will be assigned to Department A?

A.

$22,500

B.

$37,500

C.

$26,250

D.

$ 75,000