ABC Corporation has three support departments with the following costs and cost drivers: Support Department Cost Cost Driver Graphics Production $200,000 Number of copies made Accounting 500,000 Number of invoices processed Personnel 400,000 Number of employees ABC has three operating divisions, Micro, Macro, and Super. Their revenue, cost, and activity information is as follows: Revenues Direct operating expenses Number of copies made Number of invoices processed Number of employees Micro Macro Super $700,000 $850,000 $650,000 50,000 70,000 100,000 20,000 30,000 50,000 500 125 700 130 800 145 The support department allocation rate for the Personnel Department is O a. $3,200 Ob. $2,758 O c. $1,000 Od. $3,077
ABC Corporation has three support departments with the following costs and cost drivers: Support Department Cost Cost Driver Graphics Production $200,000 Number of copies made Accounting 500,000 Number of invoices processed Personnel 400,000 Number of employees ABC has three operating divisions, Micro, Macro, and Super. Their revenue, cost, and activity information is as follows: Revenues Direct operating expenses Number of copies made Number of invoices processed Number of employees Micro Macro Super $700,000 $850,000 $650,000 50,000 70,000 100,000 20,000 30,000 50,000 500 125 700 130 800 145 The support department allocation rate for the Personnel Department is O a. $3,200 Ob. $2,758 O c. $1,000 Od. $3,077
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 9E: A manufacturing company has two service and two production departments. Human Resources and Machine...
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![ABC Corporation has three support departments with the following costs and cost drivers:
Support Department Cost
Cost Driver
Graphics Production $200,000 Number of copies made
Accounting
500,000 Number of invoices processed
Personnel
400,000
Number of employees
ABC has three operating divisions, Micro, Macro, and Super. Their revenue, cost, and activity information is as follows:
Revenues
Direct operating expenses
Number of copies made
Number of invoices processed
Number of employees
Micro Macro Super
$700,000 $850,000 $650,000
50,000 70,000 100,000
20,000
30,000
50,000
Et
700
130
800
145
500
125
The support department allocation rate for the Personnel Department is
O a. $3,200
O b. $2,758
O c. $1,000
O d. $3,077](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb183d09b-48ef-4785-b7c7-c515e4148421%2Feb36024e-c148-4847-9659-4de58aeb5dee%2F76v7xqp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:ABC Corporation has three support departments with the following costs and cost drivers:
Support Department Cost
Cost Driver
Graphics Production $200,000 Number of copies made
Accounting
500,000 Number of invoices processed
Personnel
400,000
Number of employees
ABC has three operating divisions, Micro, Macro, and Super. Their revenue, cost, and activity information is as follows:
Revenues
Direct operating expenses
Number of copies made
Number of invoices processed
Number of employees
Micro Macro Super
$700,000 $850,000 $650,000
50,000 70,000 100,000
20,000
30,000
50,000
Et
700
130
800
145
500
125
The support department allocation rate for the Personnel Department is
O a. $3,200
O b. $2,758
O c. $1,000
O d. $3,077
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