Abc has three operating divisions micro macro and super

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ABC Corporation has three service departments with the following costs and activity base:

  • Service Department Cost Activity Base for Allocation
  • Graphics Production $200,000 # of copies
  • Accounting $500,000 # of invoices processed
  • Personnel Department $400,000 # of employees

ABC has three operating divisions, Micro, Macro and Super. Their revenue, cost and activity information are as follows:

  • Micro Macro Super
  • Direct Revenues $700,000 $850,000 $650,000
  • Direct Operating Expenses $50,000 $70,000 $100,000
  • # of copies made 20,000 30,000 50,000
  • # invoices processed 700 800 500
  • # of employees 130 145 125

What is the service department charge rate for the Accounting Department?

Reference no: EM13599584

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