ABC Corporation has three support departments with the following costs and cost drivers:Support Department CostCost DriverGraphics Production $200,000 Number of copies made500,000 Number of invoices processed400,000Number of employeesABC has three operating divisions, Micro, Macro, and Super. Their revenue, cost, and activity information is as follows:AccountingPersonnelMicro Macro SuperRevenues$700,000 $850,000 $650,00050,000 70,000 100,000Direct operating expensesNumber of copies made20,000 30,000 50,000Number of invoices processed700500Number of employees130125The support department cost that will be allocated to the Macro Division isO a. $405,000Ob. $175,000O c. $305,000O d. $130,000A800145All work saved.D

The activity rate is calculated a sthe activity cost divided by the activity usage. The cost is…

ABC has three operating divisions, Micro, Macro, and Super. Their revenue, cost, and activity information is as follow Micro Macro Super $700,000 $850,000 $650,000 50,000 70,000 100,000 20,000 30,000 50,000 Revenues Direct operating expenses Number of copies made Number of invoices processed Number of employees 700 130 800 145 500 125 The support department cost that will be allocated to the Macro Division is O a. $405,000 O b. $175.000 O c. $305,000 O d. $130,000

ABC has three operating divisions, Micro, Macro, and Super. Their revenue, cost, and activity information is as follow Micro Macro Super $700,000 $850,000 $650,000 50,000 70,000 100,000 20,000 30,000 50,000 Revenues Direct operating expenses Number of copies made Number of invoices processed Number of employees 700 130 800 145 500 125 The support department cost that will be allocated to the Macro Division is O a. $405,000 O b. $175.000 O c. $305,000 O d. $130,000

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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