Harris 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 March.

One of the profit centers for Harris Corporation is the Communication Systems (COMM) sector. Assume the following information for the COMM sector:
€¢ The sector has 1,800 employees, of whom 50% are office employees.
€¢ All the office employees have a phone, and 80% of them have a computer on the network.
€¢ Ninety percent of the employees with a computer also have an e-mail account.
€¢ The average number of help desk calls for March was 0.40 calls per individual with a computer.
€¢ There are 200 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 March.
b. Determine the charges to the COMM sector for the four CCS service categories forMarch.

Transcribed Image Text:

Assumed Activity Base Quantity CCS Service Category Activity Base Assumed Cost Help desk Network center Electronic mail Local voice support Number of calls Number of devices monitored Number of user accounts Number of phone extensions 33,600 273,000 23,800 56,550 1,050 4,200 2,800 3,900