Abc corporation has three service departments with the

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ABC Corporation has three service departments with the following costs and activity base: Service Department Cost Activity Base for Allocation 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:

Micro Macro Super

Direct Revenues $700,000 $850,000 $650,000

Direct Operating Expenses $50,000 $70,000 $100,000

  • of copies made 20,000 30,000 50,000
  • invoices processed 700 800 500
  • of employees 130 145 125

How much service department cost would be allocated to the Super Division?

Reference no: EM13582907

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