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
What is the service department charge rate for the Accounting Department?