1. ABC Corporation has three service departments with the following costs and activity base:

   Service Department	Cost	Activity Base for Allocation
   Graphics Production	$200,000	number of copies
   Accounting	500,000	number of invoices processed
   Personnel Department	400,000	number 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
   Number of copies made	20,000	30,000	50,000
   Number of invoices processed	700	800	500
   Number of employees	130	145	125

   What will the income of the Super Division be after all service department allocations?

   a.$300,000

   b.$550,000

   c.$200,000

   d.$325,000