
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:Surratt Corp has three operating divisions, Micro, Macro, and Super. Their revenue, cost, and activity information are as
follows:
Micro
Маcro
Super
$650,000
100,000
50,000
Revenues
$700,000
50,000
20,000
S850,000
70,000
30,000
Direct operating expenses
Number of copies made
Number of invoices processed
Number of employees
700
800
500
130
145
125
Surratt Corp also has three support departments with the following costs and cost drivers. What is the operating income of the
Micro Division AFTER all support department allocations?
Support Department
Graphics Production
Cost
Cost Driver
$200,000
500,000
number of copies made
number of invoices
Accounting
processed
number of employees
Personnel
400,000
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