ABC Corporation Has Three Service Departments with the Following Costs

question 73

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 the Accounting Department?

• A) $714
• B) $250
• C) $625
• D) $.004

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Definitions:

Hunger

A physical sensation or condition resulting from the body's need for food.

Serotonin

A neurotransmitter involved in the regulation of mood, sleep, appetite, and pain perception, among other physiological processes.

PYY

A hormone concerned with hunger and the lack of hunger, part of the neuroendocrine system that influences appetite and food intake.

Serotonin

A neurotransmitter in the brain that affects mood, emotion, and sleep.