Question Content Area

Use this information for ABC Corporation to answer the question that follow.

ABC Corporation has three service departments with the following costs and cost drivers:

Service 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:

	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

What is the service department allocation rate for the Accounting Department?

a.$625 per invoice processed

b.$250 per invoice processed

c.$714 per invoice processed

d.$0.004 per invoice processed