Question
Question Content Area ABC Corporation has three support departments with the following costs and cost drivers: Support Department Cost Cost Driver Graphics Production $200,000 Number
Question Content Area
ABC Corporation has three support departments with the following costs and cost drivers:
| Support Department | Cost | Cost Driver |
|---|---|---|
| Graphics Production | $200,000 | Number of copies made |
| Accounting | 500,000 | Number of invoices processed |
| Personnel | 400,000 | Number of employees |
ABC has three operating divisions, Micro, Macro, and Super. Their revenue, cost, and activity information is as follows:
| Line Item Description | Micro | Macro | Super |
|---|---|---|---|
| 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 |
The support department cost that will be allocated to the Macro Division is
a. $305,000
b. $130,000
c. $175,000
d. $405,000
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Financial Reporting The Theoretical And Regulatory Framework
Authors: D A V I D Alexander
2nd Edition
0412357909, 978-0412357909
