Zeta Department Store has developed the following information in order to develop a time$-$driven ABC model for its Accounts Receivable Department:

Manual processing of invoice and cash receipt $1\mathrm{.}0$ hour

Electronic processing of invoice and electronic funds transfer $0\mathrm{.}1$ hour

Maintain customer file $0\mathrm{.}5$ hour

The time to process payments of customer invoices depends on whether the customer pays the bill manually or electronically, as shown above. The time to maintain each customer file is the same for all customers. The annual cost of the Accounts Receivable Department is $$500,000$ and the associated practical capacity of accounts receivable labor is $10,000$ hours. The Accounts Receivable Department has six employees.

B$.)$ Zeta$$s Division $1$ has $1,000$ small to medium sized customers who annually generate a total of $$10$ million in sales, resulting in $4,000$ invoices. These customers pay all their invoices manually. What is the annual activity$-$based cost associated with Divisions $1$s customers?