ABC Corporation has three service departments with the following costs and activity base:
| Service Department |
Cost |
Activity Base for Allocation |
| Graphics Production |
$200,000 |
# of copies |
| Accounting |
$500,000 |
# of invoices processed |
| Personnel Department |
$400,000 |
# of employees |
|
|
|
ABC has three operating divisions, Micro, Macro and Super. Their revenue, cost and activity information are as follows:
|
Micro |
Macro |
Super |
| Direct Revenues |
$700,000 |
$850,000 |
$650,000 |
| Direct Operating Expenses |
$50,000 |
$70,000 |
$100,000 |
| # of copies made |
20,000 |
30,000 |
50,000 |
| # invoices processed |
700 |
800 |
500 |
| # of employees |
130 |
145 |
125 |
|
|
|
|
How much service department cost would be allocated to the Macro Division?