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 Activity Base Budgeted Cost Budgeted Activity Base Quantity Help desk Number of calls $160,000 3,200 Network center Number of devices monitored 735,000 9,800 Electronic mail Number of user accounts 100,000 10,000 Handheld Technology support Number of handheld devices issued 124,600 8,900 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 5,200 employees, of whom 25% are office employees. Almost all office employees (99%) 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 1.2 calls per individual with a computer. There are 600 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 charge rate for the four CCS service categories for October. CCS Service Category Service Charge Rate Help desk $fill in the blank 1 Network center $fill in the blank 3 Electronic mail $fill in the blank 5 Handheld technology $fill in the blank 7 b. Determine the charges to the COMM sector for the four CCS service categories for October. October charges to the COMM sector Help desk charge $fill in the blank 9 Network center charge $fill in the blank 10 Electronic mail charge $fill in the blank 11 Local voice support charge $fill in the blank 12
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 |
Activity Base |
Budgeted Cost |
Budgeted Activity Base Quantity |
||
Help desk | Number of calls | $160,000 | 3,200 | ||
Network center | Number of devices monitored | 735,000 | 9,800 | ||
Electronic mail | Number of user accounts | 100,000 | 10,000 | ||
Handheld Technology support | Number of handheld devices issued | 124,600 | 8,900 |
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 5,200 employees, of whom 25% are office employees.
- Almost all office employees (99%) 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 1.2 calls per individual with a computer.
- There are 600 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 charge rate for the four CCS service categories for October.
CCS Service Category | Service Charge Rate | |
Help desk | $fill in the blank 1 | |
Network center | $fill in the blank 3 | |
Electronic mail | $fill in the blank 5 | |
Handheld technology | $fill in the blank 7 |
b. Determine the charges to the COMM sector for the four CCS service categories for October.
October charges to the COMM sector | |
Help desk charge | $fill in the blank 9 |
Network center charge | $fill in the blank 10 |
Electronic mail charge | $fill in the blank 11 |
Local voice support charge | $fill in the blank 12 |
Step by step
Solved in 2 steps