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Potter & Weasley Company had the following activities, estimated indirect activity costs, and allocation bases: Activities Indirect Activity Costs Allocation Base Account inquiry (hours) $85,700

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

Activities Indirect Activity Costs Allocation Base
Account inquiry (hours) $85,700 3000
Account billing (lines) $60,000 31,000
Account verification (accounts) $39,250 25,500
Correspondence (letters) $72,000 12,000

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 6000
Account verification (accounts) 6,000 7,000
Correspondence (letters) 1,000 2,000

What is the cost per driver unit for the account verification activity? (Round all answers to two decimal places.)

$1.54

$6.54

$6.00

$1.94

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