Question : 171. ABC Corporation has three service departments with the following costs : 1246926

 

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

Service Department

Cost

Activity Base for Allocation

Graphics Production

$200,000

# of copies

Accounting

$500,000

# of invoices processed

Personnel Department

$400,000

# 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

# of copies made

20,000

30,000

50,000

# invoices processed

700

800

500

# of employees

130

145

125

 

 

 

 

What is the service department charge rate for Graphics Production? A. $2.00B. $10.00C. $6.66D. $.50

 

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

Service Department

Cost

Activity Base for Allocation

Graphics Production

$200,000

# of copies

Accounting

$500,000

# of invoices processed

Personnel Department

$400,000

# 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

# of copies made

20,000

30,000

50,000

# invoices processed

700

800

500

# of employees

130

145

125

 

 

 

 

What is the service department charge rate for the Personnel Department? A. $2,758B. $3,200C. $3,077D. $1,000

 

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

Service Department

Cost

Activity Base for Allocation

Graphics Production

$200,000

# of copies

Accounting

$500,000

# of invoices processed

Personnel Department

$400,000

# 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

# of copies made

20,000

30,000

50,000

# invoices processed

700

800

500

# of employees

130

145

125

 

 

 

 

What is the service department charge rate for the Accounting Department? A. $714B. $250C. $625D. $.004

 

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

Service Department

Cost

Activity Base for Allocation

Graphics Production

$200,000

# of copies

Accounting

$500,000

# of invoices processed

Personnel Department

$400,000

# 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

# of copies made

20,000

30,000

50,000

# invoices processed

700

800

500

# of employees

130

145

125

 

 

 

 

How much service department cost will be allocated to the Micro Division? A. $200,000B. $145,000C. $60,000D. $345,000

 

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

Service Department

Cost

Activity Base for Allocation

Graphics Production

$200,000

# of copies

Accounting

$500,000

# of invoices processed

Personnel Department

$400,000

# 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

# of copies made

20,000

30,000

50,000

# invoices processed

700

800

500

# of employees

130

145

125

 

 

 

 

How much service department cost would be allocated to the Macro Division? A. $405,000B. $175,000C. $130,000D. $305,000

 

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

Service Department

Cost

Activity Base for Allocation

Graphics Production

$200,000

# of copies

Accounting

$500,000

# of invoices processed

Personnel Department

$400,000

# 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

# of copies made

20,000

30,000

50,000

# invoices processed

700

800

500

# of employees

130

145

125

 

 

 

 

How much service department cost would be allocated to the Super Division? A. $350,000B. $100,000C. $125,000D. $550,000

 

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

Service Department

Cost

Activity Base for Allocation

Graphics Production

$200,000

# of copies

Accounting

$500,000

# of invoices processed

Personnel Department

$400,000

# 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

# of copies made

20,000

30,000

50,000

# invoices processed

700

800

500

# of employees

130

145

125

 

 

 

 

What will the income of the Micro Division be after all service department allocations? A. $305,000B. $650,000C. $345,000D. $610,000

 

178. What will the income of the Macro Division be after all service department allocations? A. $780,000B. $375,000C. $575,000D. $435,000

 

179. What will the income of the Super Division be after all service department allocations? A. $300,000B. $325,000C. $550,000D. $200,000

 

 

 

 

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