Question :
171. ABC Corporation has three service departments with the following costs : 1251703
171. ABC Corporation has three service departments with the following costs and activity base:
Service DepartmentCostActivity 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:
MicroMacroSuper
Direct Revenues$700,000$850,000$650,000
Direct Operating Expenses$50,000$70,000$100,000
# of copies made20,00030,00050,000
# invoices processed700800500
# of employees130145125
172. ABC Corporation has three service departments with the following costs and activity base:
Service DepartmentCostActivity 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:
MicroMacroSuper
Direct Revenues$700,000$850,000$650,000
Direct Operating Expenses$50,000$70,000$100,000
# of copies made20,00030,00050,000
# invoices processed700800500
# of employees130145125
173. ABC Corporation has three service departments with the following costs and activity base:
Service DepartmentCostActivity 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:
MicroMacroSuper
Direct Revenues$700,000$850,000$650,000
Direct Operating Expenses$50,000$70,000$100,000
# of copies made20,00030,00050,000
# invoices processed700800500
# of employees130145125
174. ABC Corporation has three service departments with the following costs and activity base:
Service DepartmentCostActivity 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:
175. ABC Corporation has three service departments with the following costs and activity base:
Service DepartmentCostActivity 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:
176. ABC Corporation has three service departments with the following costs and activity base:
Service DepartmentCostActivity 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:
177. What will the income of the Macro Division be after all service department allocations? A. $780,000B. $375,000C. $575,000D. $435,000
178. What will the income of the Super Division be after all service department allocations? A. $300,000B. $325,000C. $550,000D. $200,000
