Potter & Weasley Company had the following activities, estimated indirect activity costs, and allocation bases:

Activities	Indirect Activity Costs	Allocation Base
Account inquiry (hours)	$86,400	2,700
Account billing (lines)	$56,000	32,000
Account verification (accounts)	$38,250	25,500
Correspondence (letters)	$80,000	10,000

Potter & Weasley uses activity based costing.

The above activities are used by Departments P and Q as follows:

	Department P	Department Q
Account inquiry (hours)	400	800
Account billing (lines)	10,000	4,000
Account verification (accounts)	6,000	7,000
Correspondence (letters)	1,000	2,000

How much of the correspondence cost will be assigned to Department P?

A.

$16,000

B.

$1,500

C.

$8,000

D.

$9,000