Illinois Industries has two divisions, East and West. You are given the following information about the costs of four activities that occur at corporate headquarters:

Activity		T otal Costs	Activity-cost drivers
Managing accounts payable		$100,000	4,000 transactions
Managing human resources		200,000	700 employees
Managing accounts receivable		150,000	3,000 hours
Managing computer network		250,000	500 computers

Total costs

$700,000

The above activities are used by the two divisions as follows:

	East Division	West Division
Accounts payable transactions	1,200 transactions	2,800 transactions
Number of employees	300 employees	400 employees
Accounts receivable hours	2,000 hours	1,000 hours
Number of computers	200 computers	300 computers

Reference: Ref 7-7

How much of the Accounts Payable cost will be allocated to the East Division?

	A.	$62,500
	B.	$100,000
	C.	$30,000
	D.	$262,500