Answer Happy

Harry & Ron Company had the following activities, estimated Indirect activity costs, and allocation bases: Activities Indirect Activity Costs Allocation Base Account inquiry (hours) $85,900 4000 Account billing (lines) $57,000 35,000 Account verification Kaccounts) $37,250 27,500 Correspondence (letters) $71,000 11,000 Harry & Ron uses activity based costing. The above activities are used by Departments A and B as follows: Department A Department B Account inquiry (hours) 400 800 Account billing (lines) 10,000 4,000 Account verification (accounts) 6,000 7,000 Correspondence (letters) 500 1000 How much of the correspondence cost will be assigned to Department A? O $3727 O $1859 O $3227 O $6455