How much service department cost would be allocated

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Reference no: EM133178868

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

Service Department

Cost

Activity Base for Allocation

Graphics Production

$200,000

number of copies

Accounting

500,000

number of invoices processed

Personnel Department

400,000

number 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

Number of copies made

20,000

30,000

50,000

Number of invoices processed

700

800

500

Number of employees

130

145

125

Required - How much service department cost would be allocated to the Super Division?

Reference no: EM133178868

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