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:
What will the income of the Macro Division be after all service department allocations?
A) $780,000
B) $375,000
C) $575,000
D) $435,000

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:
What will the income of the Macro Division be after all service department allocations?
A) $780,000 
B) $375,000 
C) $575,000 
D) $435,000

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:
What will the income of the Macro Division be after all service department allocations?
A) $780,000 
B) $375,000 
C) $575,000 
D) $435,000

ABC Corporation Has Three Service Departments with the Following Costs