Service Department Charges and Activity Bases Middler Corporation, a manufacture

Question

Service Department Charges and Activity Bases Middler 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 October. Ccs Service Category Help desk Network center Electronic mail Smartphone support Number of smartphones issued One of the profit centers for Middler Corporation is the Communication Systems (COMM) sector. Assume the following information for the COMM sector: Budgeted Activity Base Quantity Budgeted Cost Activity Base Number of calls Number of devices monitored Number of user accounts $94,320 546,100 46,000 103,680 2,400 8,600 5,750 8,100 The sector has 5,000 employees, of whom 60% are office employees All the office employees have been issued a smartphone, and 90% of them have a computer on the network. 95 percent of the employees with a computer also have an e-mail account. . The average number of help desk calls for October was 1 call per individual with a computer. . There are 290 additional printers, servers, and peripherals on the network beyond the personal computers. a. Determine the service charge rate for the four CCS service categories for October. Round your answers to two decimal places. CCS Service Category Help desk Network center Electronic mail Smartphone support b. Determine the charges to the COMM sector for the four CCS service categories for October. Round your answers to the nearest dollar amount. October charges to the COMM sector: Help desk charge Network center charge Electronic mail charge Smartphone support charge Service Charge Rate

Explanation / Answer

1. The service charge rate for the four CCS service categories for October. CCS service category Budgeted cost Budgeted activity base quantity Service Charge rate Help desk $94,320 2400 calls $39.30 per call Network Center $546,100 8600 devices $63.50 per device Electronic mail $46,000 5750 users account $8 per user account Smartphone support $103,680 8100 smartphones $12.80 per smartphone Service charge rate = Budgeted cost/budgeted activity base quantity 2. October charges to the COMM sector Helpdesk charge (5000 employees x 60% office employees x 90% employee with computer x 1 call per individual)x$39.30 per call $106,110 Network center charge [(5000 employees x 60% office employees x 90% employee with computer)+290]x$63.50 per device $189,865 Electronic mail charge (5000 employees x 60% office employees x 90% employee with computer x 95% email account)x$8 per user account $20,520 Smartphone support (5000 employees x 60% office employees) x $12.80 per smartphone $38,400

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.