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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Ma1.

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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 follows
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
Transcribed Image Text: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 follows 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
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