ABC Corporation Has Three Service Departments with the Following Costs

question 170

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 will the income of the Super Division be after all service department allocations?

• A) $300,000
• B) $325,000
• C) $550,000
• D) $200,000

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