ABC Corporation has three support departments with the following costs and cost drivers: Support Department Cost...

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Accounting

ABC Corporation has three support departments with the followingcosts and cost drivers: Support Department Cost Cost DriverGraphics Production $200,000 number of copies made Accounting500,000 number of invoices processed Personnel 400,000 number ofemployees ABC has three operating divisions, Micro, Macro, andSuper. Their revenue, cost, and activity information are asfollows: Micro Macro Super Revenues $700,000 $850,000 $650,000Direct operating expenses 50,000 70,000 100,000 Number of copiesmade 20,000 30,000 50,000 Number of invoices processed 700 800 500Number of employees 130 145 125 The support department allocationrate for the Accounting Department is a.$714 b.$250 c.$625d.$0.004

ABC Corporation has three support departments with the followingcosts and cost drivers:

Support DepartmentCostCost Driver
Graphics Production$200,000number of copies made
Accounting500,000number of invoices processed
Personnel400,000number of employees

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

MicroMacroSuper
Revenues$700,000$850,000$650,000
Direct operating expenses50,00070,000100,000
Number of copies made20,00030,00050,000
Number of invoices processed700800500
Number of employees130145125

The support department allocation rate for the PersonnelDepartment is

a.$2,758

b.$1,000

c.$3,200

d.$3,077

ABC Corporation has three support departments with the followingcosts and cost drivers:

Support DepartmentCostCost Driver
Graphics Production$200,000number of copies made
Accounting500,000number of invoices processed
Personnel400,000number of employees

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

MicroMacroSuper
Revenues$700,000$850,000$650,000
Direct operating expenses50,00070,000100,000
Number of copies made20,00030,00050,000
Number of invoices processed700800500
Number of employees130145125

The support department cost that will be allocated to the MicroDivision is

a.$145,000

b.$345,000

c.$60,000

d.$200,000

ABC Corporation has three support departments with the followingcosts and cost drivers:

Support DepartmentCostCost Driver
Graphics Production$200,000number of copies made
Accounting500,000number of invoices processed
Personnel400,000number of employees

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

MicroMacroSuper
Revenues$700,000$850,000$650,000
Direct operating expenses50,00070,000100,000
Number of copies made20,00030,00050,000
Number of invoices processed700800500
Number of employees130145125

The support department cost that will be allocated to the MacroDivision is

a.$305,000

b.$405,000

c.$130,000

d.$175,000

Answer & Explanation Solved by verified expert
3.9 Ratings (494 Votes)
1 Total number of invoices processed 700800500 2000 Support department allocation rate for the Accounting Department Cost of accounting departmentTotal number of invoices processed 5000002000 250 So the answer is option B 250 2 Total number    See Answer
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