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5. ABC Corporation has three service departments with the following costs and activity base: Service Department Graphics Production Accounting Personnel Department Cost $200,000 $500,000 $400,000
5. ABC Corporation has three service departments with the following costs and activity base: Service Department Graphics Production Accounting Personnel Department Cost $200,000 $500,000 $400,000 Activity Base for Allocation # of copies # of invoices processed #of employees ABC has three operating divisions, Micro, Macro and Super. Their revenue, cost and activity information for December 31, 2017 are as follows: Direct Revenues Direct Operating Expenses # of copies made # invoices processed # of employees Micro $700,000 $50,000 20,000 700 130 Macro $850,000 $70,000 30,000 800 Super $650,000 $100,000 50,000 500 125 145 1 Prepare departmental income statements AFTER allocating service department costs to the three operating divisions. ABC Departmental Income Statement December 31, 2014 Graphics Accounting Personnel Micro Macro Super
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