ABC Corporation has three service departments with the following costs and activity base:
Service Department Cost Activity base
Graphics Production$ 200,000 # of copies
Accounting $500,000 # of invoices processed
Personnel Department $400,000 # of employees
ABC has three operating divisions, Micro, Macro, and Super. Their revenue, cost and activity information are as follows:

A. How much service department cost will be allocated to the Micro Division?
B. How much service department cost would be allocated to the Macro Division?

Transcribed Image Text:

Micro Macro Super Direct Revenues # of copies made # Invoices processed # of employees 700,000 Direct Operating Expenses50,000 20,000 700 130 850,000 70,000 30,000 800 145 650,000 100,000 50,000 500 125