ABC Corporation has three service departments with the following costs and activity base: Activity Base for Allocation Service Department Graphics Production Accounting Personnel Direct revenues Direct operating expenses Number of copies made Cost Number of invoices processed Number of employees $200,000 500,000 ABC has three operating divisions, Micro, Macro and Super. Their revenue, cost and activity information is as follows: 400,000 Micro $700,000 $50,000 20,000 700 number of copies made number of invoices processed number of employees 130 Macro $850,000 $70,000 30,000 800 145 Super $650,000 $100,000 50,000 500 125 What is the service department charge rate for the Personnel Department? a. $3,077 b. $2,758 C.$3,200 d. $1,000
ABC Corporation has three service departments with the following costs and activity base: Activity Base for Allocation Service Department Graphics Production Accounting Personnel Direct revenues Direct operating expenses Number of copies made Cost Number of invoices processed Number of employees $200,000 500,000 ABC has three operating divisions, Micro, Macro and Super. Their revenue, cost and activity information is as follows: 400,000 Micro $700,000 $50,000 20,000 700 number of copies made number of invoices processed number of employees 130 Macro $850,000 $70,000 30,000 800 145 Super $650,000 $100,000 50,000 500 125 What is the service department charge rate for the Personnel Department? a. $3,077 b. $2,758 C.$3,200 d. $1,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
36.)
Transcribed Image Text:ABC Corporation has three service departments with the following costs and activity base:
Activity Base for
Allocation
Service Department
Graphics Production
Accounting
Personnel
Direct revenues
Direct operating
expenses
Number of copies
made
Cost
Number of
invoices
processed
Number of
employees
$200,000
500,000
ABC has three operating divisions, Micro, Macro and Super. Their revenue, cost and activity information is as follows:
400,000
Micro
$700,000
$50,000
20,000
700
number of copies made
number of invoices
processed
number of employees
130
Macro
$850,000
$70,000
30,000
800
145
Super
$650,000
$100,000
50,000
500
125
What is the service department charge rate for the Personnel Department?
a. $3,077
b. $2,758
C.$3,200
d. $1,000
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