Service department charges and activity basesMiddler 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 servicecategories 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.Budgeted ActivityCCS Service CategoryActivity BaseBudgeted CostBase QuantityHelp deskNumber of calls$170,0003,400Network centerNumber of devices monitored824,00010,300Electronic mailNumber of user accounts88,2009,800Number of handheld devicesHandheld Technology support118,3009,100issuedOne of the profit centers for Middler Corporation is the Communication Systems (COMM) sector. Assume the following information for the COMM sector:• The sector has 4,800 employees, of whom 35% are office employees.• Almost all office employees (98%) have a computer on the network.• One hundred percent of the employees with a computer also have an e-mail account.• The average number of help desk calls for October was 1.1 calls per individual with a computer.• There are 550 additional printers, servers, and peripherals on the network beyond the personal computers.• All the nonoffice employees have been issued a handheld device.This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.XOpen spreadsheeta. Determine the service charge rate for the four CCS service categories for October. Round your answers to the nearest dollar.CCS Service CategoryService Charge RateHelp desk50 v Per callNetwork center80 V Per device monitoredElectronic mailV Per user or e-mail accountHandheld technology support$113 V Per device a. Determine the service charge rate for the four CCS service categories for October. Round your answers to the nearest dollar.CCS Service CategoryService Charge RateHelp desk50 V Per callNetwork center$V Per device monitored80Electronic mailV Per user or e-mail account9Handheld technology supportV Per device13b. Determine the charges to the COMM sector for the four CCS service categories for October. Round your answers to the nearest dollar.October charges to the COMM sector:Help deskNetwork centerElectronic mailHandheld technology support

Activity-based costing: Activity-based costing is commonly known as ABC. It is a costing method that…

Answered: b. Determine the charges to the COMM…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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b. Determine the charges to the COMM sector for the four cCS service categories for October. Round your answers to the nearest dollar. October charges to the COMM sector: Help desk Network center