ABC Corporation has three service departments with the following costs and activ
ID: 2597012 • Letter: A
Question
ABC Corporation has three service departments with the following costs and activity base: Service Department CostActivity Base for Allocation 200,000number of copies 500,000unber of invoices 400,000 Graphics Production ersonnel Department umber of employees ABC has three operating divisions, Micro, Macro and Super. Their revenue, cost and activity information are as follows: Micro Macro Super operating expenses 30, umber of copies made Number of invoices processed Number of employees 130 14 123 How much service department cost will be allocated to the Micro Division? a.$200,000 Ob. $145,000 Oc. $60,000 Od. $345,000 Previous NexExplanation / Answer
The correct answer is d. $ 345,000
Note :
Service Department Cost Activity Base ( Micro + Macro +Super) Activiy Rate ( Cost / Activity Base) Graphics 200,000 100,000 Copies 2 Accounting 500,000 2,000 Invoices Processed 250 Personnel 400,000 400 Number of Employees 1000