ABC Corporation Has Three Service Departments with the Following Costs

question 125

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

• A) $405,000
• B) $175,000
• C) $130,000
• D) $305,000

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