ABC Corporation Has Three Service Departments with the Following Costs

question 169

Multiple Choice

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 is the service department charge rate for Graphics Production?

• A) $2.00
• B) $10.00
• C) $6.66
• D) $.50

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Definitions:

Wealth of Nations

A seminal work by economist Adam Smith published in 1776, which lays out the foundational concepts of classical economics, including the division of labor and free market principles.

John Locke

A 17th-century English philosopher known for his contributions to liberalism, political theory, and his theories of mind and consciousness.

Abolition

The movement to end slavery and the slave trade, which gained momentum in the 19th century and led to the emancipation of slaves, especially in the Western world.

Indian Tribes

Indigenous communities recognized as sovereign entities with their own governance and cultural traditions within the United States.