=+EX 24-6 Service department charges and activity bases obj. 3

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b. Help desk,

$30,600 Encounter Sporting Goods Company has two divisions, Wholesale and Retail, and two corporate service departments, Tech Support and Accounts Payable. The corporate expenses for the year ended December 31, 2010, are as follows:

Tech Support Department $ 705,000 Accounts Payable Department 278,000 Other corporate administrative expenses 415,000 __________ Total corporate expense $1,398,000 __________ __________ The other corporate administrative expenses include officers’ salaries and other expenses required by the corporation. The Tech Support Department charges the divisions for services rendered, based on the number of computers in the department, and the Accounts Payable Department charges divisions for services, based on the number of checks issued. The usage of service by the two divisions is as follows: