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ABC Corporation has three service departments with the following costs and activity base: Activity Base for Allocation Service Department Graphics Production Accounting Personnel Department Cost
ABC Corporation has three service departments with the following costs and activity base: Activity Base for Allocation Service Department Graphics Production Accounting Personnel Department Cost $200,000 $500,000 $400,000 #of copies # of invoices processed # 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 # of copies made # invoices processed # of employees $700,000 $850,000 $650,000 Direct Operating Expenses 50,000 70,000 $100,000 50,000 500 125 20,000 700 130 30,000 800 145 How much service department cost will be allocated to the Micro Division? a. $200,000 b. $60,000 c. $345,000 d. $145,000 5
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