Middler Corporation, a manufacturer of electronics and communications systems, allocates Computing and Communications Services (CCS) service department costs to profit centers. The following table lists service categories and cost drivers used by the CCS department. The table also includes cost and cost drivers for each service for October. CCS Service Category Cost Driver Budgeted Cost Budgeted Cost Driver Quantity Help desk Number of calls $110,250 2,500 Network center Number of devices monitored 619,500 8,850 Electronic mail Number of user accounts 47,600 5,950 Handheld technology support Number of handheld devices issued 106,240 8,300 One of the profit centers for Middler Corporation is the Communication Systems (COMM) sector. Assume the following information for the COMM sector: The sector has 2,000 employees, of whom 40% are office employees. Almost all office employees (70%) have a computer on the network. 90 percent of the employees with a computer also have an e-mail account. The average number of help desk calls for October was 1 calls per individual with a computer. There are 290 additional printers, servers, and peripherals on the network beyond the personal computers. All the nonoffice employees have been issued a handheld device. a. Determine the service allocation rate for the four CCS service categories for October. Round your answers to two decimal places. CCS Service Category Service Allocation Rate Help desk $fill in the blank 1 Network center $fill in the blank 3 Electronic mail $fill in the blank 5 Handheld technology support $fill in the blank 7 b. Determine the allocations to the COMM sector for the four CCS service categories for October. October allocations to the COMM sector: Help desk allocation $fill in the blank 9 Network center allocation $fill in the blank 10 Electronic mail allocation $fill in the blank 11 Handheld technology support $fill in the blank 12

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Middler Corporation, a manufacturer of electronics and communications systems, allocates Computing and Communications Services (CCS) service department costs to profit centers. The following table lists service categories and cost drivers used by the CCS department. The table also includes cost and cost drivers for each service for October.

CCS Service Category	Cost Driver	Budgeted Cost	Budgeted Cost Driver Quantity
Help desk	Number of calls	$110,250		2,500
Network center	Number of devices monitored	619,500		8,850
Electronic mail	Number of user accounts	47,600		5,950
Handheld technology support	Number of handheld devices issued	106,240		8,300

One of the profit centers for Middler Corporation is the Communication Systems (COMM) sector. Assume the following information for the COMM sector:

The sector has 2,000 employees, of whom 40% are office employees.
Almost all office employees (70%) have a computer on the network.
90 percent of the employees with a computer also have an e-mail account.
The average number of help desk calls for October was 1 calls per individual with a computer.
There are 290 additional printers, servers, and peripherals on the network beyond the personal computers.
All the nonoffice employees have been issued a handheld device.

a. Determine the service allocation rate for the four CCS service categories for October. Round your answers to two decimal places.

CCS Service Category	Service Allocation Rate
Help desk	$fill in the blank 1
Network center	$fill in the blank 3
Electronic mail	$fill in the blank 5
Handheld technology support	$fill in the blank 7

b. Determine the allocations to the COMM sector for the four CCS service categories for October.

October allocations to the COMM sector:
Help desk allocation	$fill in the blank 9
Network center allocation	$fill in the blank 10
Electronic mail allocation	$fill in the blank 11
Handheld technology support	$fill in the blank 12

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