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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 | 3600 |
Account billing (lines) | $54,000 | 35,000 |
Account verification (accounts) | $40,250 | 23,500 |
Correspondence (letters) | $70,000 | 9000 |
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) | 5000 | 7000 |
Correspondence (letters) | 1,000 | 2,000 |
How much of the account verification costs will be assigned to Department P? (Do not round intermediate calculations and round the final answer to the nearest dollar.)
Group of answer choices
$8563.83
$6563.83
$4080.75
$11,989.36
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