Use this information for ABC Corporation to answer the questions that follow.

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

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

-How much service department cost would be allocated to the Super Division?
A) $350,000
B) $100,000
C) $125,000
D) $550,000

Question

Use this information for ABC Corporation to answer the questions that follow.
​
ABC Corporation has three service departments with the following costs and activity base:
​
  ABC has three operating divisions, Micro, Macro and Super. Their revenue, cost and activity information is as follows:
​
 
-How much service department cost would be allocated to the Super Division?
A) $350,000 
B) $100,000 
C) $125,000 
D) $550,000

Quizplus · Accepted Answer

The Super Division uses 25% of the service department's total cost, which is $350,000.

Use This Information for ABC Corporation to Answer the Questions