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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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