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