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

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

Activity

Total Costs

Activity-cost drivers

Managing accounts payable

$200,000

4,000 invoices

Managing human resources

210,000

700 employees

Managing accounts receivable

150,000

3,000 accounts

Managing computer network

250,000

500 computers

Total costs

$810,000

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

North Division

South Division

Number of invoices

1,500 invoices

2,500 invoices

Number of employees

300 employees

400 employees

Accounts receivable accounts

2,000 accounts

1,000 accounts

Number of computers

200 computers

300 computers

How much of the Computer Network cost will be allocated to the South Division?

$100,000

$150,000

$75,000

$50,000

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