Answered step by step
Verified Expert Solution
Question
1 Approved Answer
ABC Corporation has three service departments with the following costs and activity base: Service Department Cost Activity Base for Allocation Graphics Production $200,000 # of
ABC Corporation has three service departments with the following costs and activity base:
Service Department | Cost | Activity Base for Allocation |
Graphics Production | $200,000 | # of copies |
Accounting | $500,000 | # of invoices processed |
Personnel Department | $400,000 | # of employees |
ABC has three operating divisions, Micro, Macro and Super. Their revenue, cost and activity information are as follows:
Micro | Macro | Super | |
Direct Revenues | $700,000 | $850,000 | $650,000 |
Direct Operating Expenses | $50,000 | $70,000 | $100,000 |
# of copies made | 20,000 | 30,000 | 50,000 |
# invoices processed | 700 | 800 | 500 |
# of employees | 130 | 145 | 125 |
How much service department cost would be allocated to the Macro Division?
$405,000 | ||
$175,000 | ||
$130,000 | ||
$305,000 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started