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 would be allocated to the Macro Division?
A) $405,000
B) $175,000
C) $130,000
D) $305,000

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 would be allocated to the Macro Division?
A) $405,000 
B) $175,000 
C) $130,000 
D) $305,000

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 would be allocated to the Macro Division?
A) $405,000 
B) $175,000 
C) $130,000 
D) $305,000

ABC Corporation Has Three Service Departments with the Following Costs