Harold Corporation, a manufacturer of electronics and communications systems, us

Question

Harold Corporation, a manufacturer of electronics and communications systems, uses a service department charge system to charge profit centers with Computing and Communications Services (CCS) service department costs. The following table identifies an abbreviated list of service categories and activity bases used by the CCS department. The table also includes some assumed cost and activity base quantity information for each service for April. CCS Service Category Activity Base Assumed Cost Assumed Activity Base Quantity Help desk Number of calls $119,970 3,100 Network center Number of devices monitored 697,125 9,750 Electronic mail Number of user accounts 68,500 6,850 Local voice support Number of phone extensions 147,200 9,200 One of the profit centers for Harold Corporation is the Communication Systems (COMM) sector. Assume the following information for the COMM sector:

Explanation / Answer

FOLLOW THIS a. Help desk: = $34 per call Network center: = $62.50 per device monitored Electronic mail: = $10.40 per e-mail account Local voice support: = $16.60 per phone extension b. April charges to the COMM sector: Help desk charge: (3,000 employees

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