Service Department Graphics Production Accounting Personnel Cost $200,000 500,000 400,000 Direct revenues Direct operating expenses Number of copies made Number of invoices processed Number of employees ABC has three operating divisions, Micro, Macro and Super. Their revenue, cost and activity information is as follow: Activity Base for Allocation number of copies made number of invoices processed number of employees Micro $700,000 $50,000 20,000 700 130 Macro $850,000 $70,000 30,000 800 145 What is the service department charge rate for Graphics Production? Oa. $6.66 Ob. $2 Oc. $10 Od. $0.50 Super $650,000 $100,000 50,000 500 125
Service Department Graphics Production Accounting Personnel Cost $200,000 500,000 400,000 Direct revenues Direct operating expenses Number of copies made Number of invoices processed Number of employees ABC has three operating divisions, Micro, Macro and Super. Their revenue, cost and activity information is as follow: Activity Base for Allocation number of copies made number of invoices processed number of employees Micro $700,000 $50,000 20,000 700 130 Macro $850,000 $70,000 30,000 800 145 What is the service department charge rate for Graphics Production? Oa. $6.66 Ob. $2 Oc. $10 Od. $0.50 Super $650,000 $100,000 50,000 500 125
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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