ABC Corporation has three service departments with the followingcosts and activity base: Service Department Cost Activity Base
Question:
ABC Corporation has three service departments with the followingcosts 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. Theirrevenue, 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 | 50,000 |
| Number of invoices processed | 700 | 800 | 500 |
| Number of employees | 130 | 145 | 125 |
What is the service department charge rate for GraphicsProduction?
a.$10.00
b.$2.00
c.$0.50
d.$6.66
ABC Corporation has three service departments with the followingcosts 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. Theirrevenue, 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 | 50,000 |
| Number of invoices processed | 700 | 800 | 500 |
| Number of employees | 130 | 145 | 125 |
How much service department cost will be allocated to the MicroDivision?
a.$200,000
b.$145,000
c.$345,000
d.$60,000
Blaser Corporation had $275,000 in invested assets, sales of$330,000, income from operations amounting to $33,000 and a desiredminimum rate of return of 7.5%. The rate of return on investmentfor Blaser Corporation is
a.8.3%
b.10%
c.7.5%
d.12%
The amount of increase or decrease in revenue that is expectedfrom a particular course of action as compared with an alternativeis
a.contribution margin
b.differential cost
c.manufacturing margin
d.differential revenue
Expert Answer:
The detailed answer for the above question is provided below Question 1 For Graphics Production Cost 200000 and it Activity Base for Allocation is Num... View the full answer
Managerial Accounting An Introduction to Concepts Methods and Uses
ISBN: 978-0324639766
10th Edition
Authors: Michael W. Maher, Clyde P. Stickney, Roman L. Weil
