ABC Corporation has three support departments with the following costs and cost drivers: Support Department Cost Cost Driver Graphics Production $200,000 Number of copies made 500,000 Number of invoices processed 400,000 Number of employees ABC has three operating divisions, Micro, Macro, and Super. Their revenue, cost, and activity information is as follows: Accounting Personnel Revenues Direct operating expenses Number of copies made Number of invoices processed Number of employees Micro Macro Super $700,000 $850,000 $650,000 50,000 70,000 100,000 20,000 30,000 50,000 700 130 800 145 500 125 The support department allocation rate for the Personnel Department is O a. $2,758 Ob. $3,077 Oc. $3,200 d. $1,000.
ABC Corporation has three support departments with the following costs and cost drivers: Support Department Cost Cost Driver Graphics Production $200,000 Number of copies made 500,000 Number of invoices processed 400,000 Number of employees ABC has three operating divisions, Micro, Macro, and Super. Their revenue, cost, and activity information is as follows: Accounting Personnel Revenues Direct operating expenses Number of copies made Number of invoices processed Number of employees Micro Macro Super $700,000 $850,000 $650,000 50,000 70,000 100,000 20,000 30,000 50,000 700 130 800 145 500 125 The support department allocation rate for the Personnel Department is O a. $2,758 Ob. $3,077 Oc. $3,200 d. $1,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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a
Transcribed Image Text:ABC Corporation has three support departments with the following costs and cost drivers:
Support Department Cost
Cost Driver
Graphics Production $200,000 Number of copies made
500,000 Number of invoices processed
400,000
Number of employees
ABC has three operating divisions, Micro, Macro, and Super. Their revenue, cost, and activity information is as follows:
Accounting
Personnel
Revenues
Micro
Macro Super
$700,000 $850,000 $650,000
50,000 70,000 100,000
20,000 30,000 50,000
Direct operating expenses
Number of copies made
Number of invoices processed
Number of employees
The support department allocation rate for the Personnel Department is
a. $2,758
Ob. $3,077
Oc. $3,200
d. $1,000
700
130
800
145
500
125
E
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