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 are as follows:
How much service department cost will be allocated to the Micro Division?
A) $200,000
B) $145,000
C) $60,000
D) $345,000

Question

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 are as follows:
 How much service department cost will be allocated to the Micro Division?
A) $200,000 
B) $145,000 
C) $60,000 
D) $345,000

Quizplus · Accepted Answer

The Answer of 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 are as follows:
 How much service department cost will be allocated to the Micro Division?
A) $200,000 
B) $145,000 
C) $60,000 
D) $345,000

ABC Corporation Has Three Service Departments with the Following Costs