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Potter & Weasley Company had the following activities, estimated indirect activity costs, and allocation bases: Allocation Base 3600 35,000 Activities Indirect Activity Costs Account inquiry
Potter & Weasley Company had the following activities, estimated indirect activity costs, and allocation bases: Allocation Base 3600 35,000 Activities Indirect Activity Costs Account inquiry (hours) $85,700 Account billing (lines) $54,000 Account verification (accounts) $40,250 Correspondence (letters) $70,000 Potter & Weasley uses activity based costing. 23,500 9000 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 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.) 2.000 $4080.75 $11.989.36 $6563.83 $8563.83
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