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ABC Corporation has three service departments with the following costs and activity base: Service Department Graphics Production Cost $200,000 Activity Base for Allocation number of
ABC Corporation has three service departments with the following costs and activity base: Service Department Graphics Production Cost $200,000 Activity Base for Allocation number of copies number of invoices processed number of employees 500,000 Accounting Personnel Department 400,000 ABC has three operating divisions, Micro, Macro and Super. Their revenue, cost and activity information are as follows: Micro Direct revenues Direct operating expenses Number of copies made Number of invoices processed Number of employees $700,000 50,000 20,000 700 Macro $850,000 70,000 30,000 800 145 Super $650,000 100,000 50,000 500 125 130 What will the income of the Micro Division be after all service department allocations
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