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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
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?
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