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 500,000 number of invoices processed 400,000 number of employees ABC has three operating divisions, Micro, Macro, and Super. Their revenue, cost, and activity information are as follows: Accounting Personnel Micro Macro Super $700,000 $850,000 $650,000 50,000 70,000 100,000 20,000 30,000 50,000 700 800 Revenues Direct operating expenses Number of copies made Number of invoices processed Number of employees The operating income of the Micro Division after all support department allocations will be a. $650,000 Ob. $345,000 Oc. $610,000 Od. $305,000 130 145 500 125

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 500,000 number of invoices processed 400,000 number of employees ABC has three operating divisions, Micro, Macro, and Super. Their revenue, cost, and activity information are as follows: Accounting Personnel Micro Macro Super $700,000 $850,000 $650,000 50,000 70,000 100,000 20,000 30,000 50,000 700 800 Revenues Direct operating expenses Number of copies made Number of invoices processed Number of employees The operating income of the Micro Division after all support department allocations will be a. $650,000 Ob. $345,000 Oc. $610,000 Od. $305,000 130 145 500 125

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter5: Support Department And Joint Cost Allocation

Section: Chapter Questions

Problem 1CMA

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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 500,000 Number of invoices processed 400,000 Number of employees ABC has three operating divisions, Micro, Macro, and Super. Their revenue, cost, and activity information is as follows: Accounting Personnel Micro Macro Super Revenues $700,000 $850,000 $650,000 50,000 70,000 100,000 Direct operating expenses Number of copies made 20,000 30,000 50,000 Number of invoices processed 700 500 Number of employees 130 125 The support department cost that will be allocated to the Macro Division is O a. $405,000 Ob. $175,000 O c. $305,000 O d. $130,000 A 800 145 All work saved. D
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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 are as follows: Micro Macro Super 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 The operating income of the Micro Division after all support department allocations will be Oa. $610,000 Ob. $650,000 Oc. $345,000 Od. $305,000