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 the Personnel Department? A. $2,758B. $3,200C. $3,077D. $1,000
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 Accounting Department? A. $714B. $250C. $625D. $.004
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
How much service department cost will be allocated to the Micro Division? A. $200,000B. $145,000C. $60,000D. $345,000
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 would be allocated to the Macro Division? A. $405,000B. $175,000C. $130,000D. $305,000
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 Super Division? A. $350,000B. $100,000C. $125,000D. $550,000
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
What will the income of the Micro Division be after all service department allocations? A. $305,000B. $650,000C. $345,000D. $610,000
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 Macro Division be after all service department allocations? A. $780,000B. $375,000C. $575,000D. $435,000
178. 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 Super Division be after all service department allocations? A. $300,000B. $325,000C. $550,000D. $200,000
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