Question Content AreaABC 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 $50,00070,000100,000$

Number of copies made $20,00030,00050,000$

Number of invoices processed $700800500$

Number of employees $130145125$

What is the service department charge rate for Graphics Production?

a$.$ $$6\mathrm{.}66$

b$.$ $$2\mathrm{.}00$

c$.$ $$10\mathrm{.}00$

d$.$ $$0\mathrm{.}50$