Belmont College is a small liberal arts school located in Latham, Massachusetts. It has an IT Department, the Information Technology Help Desk (ITHD), whose mission is to "assist the Belmont community in resolving its most complicated IT cases." ITHD's cost per case is usually markedly less than other similarly sized Help Desks, which suggests they are running efficient operations. Moreover, they resolve several more cases than their benchmark. However since the COVID-19 pandemic, they have experienced a backlog on some cases and user (ie customer) satisfaction has decresed. To carry out its mission, ITHD currently has the following four activities:

Level 1 (L1) cases: Very simple cases, primarily made up of password changes and changing desktop settings (that could be answered by Googling the issue or with a short 'how to' video). ITHD resolves 3,000 L1 cases annually, and each takes on average 0.25 hours (15 minutes) to resolve. Users often complain about these issues taking so long to resolve.

Level 2 (L2) cases: Complicated cases that might require research and programming. ITHD resolves 1,000 L2 cases annually; each case takes about 3 hours to resolve. While users are satisfied with L3 outcomes, there are a backlog of cases awaiting attention.

Class Driving: Ever since going remote at the onset of the pandemic, ITHD has been assisting faculty with direct support during their classes. These 'drivers' help with real-time technical issues, managing the Webex room and tracking class participation. Approximately 200 courses are using Class Drivers and those faculty are very satisfied with this service.

Huddle meetings: Daily ITHD meetings to update each other issues related to their L1 cases, L2 cases and class driver roles. These meetings are considered a "waste of time" among the technicians, as they do not add much value.

There are 3 ITHD technicians, who each draw a salary of $40,000 per year, including benefits. Each technician is full time, meaning that they work 2,000 hours annual. A typical day for the technicians is as follows: they start their day with the 1-hour "huddle" meeting. After that, they typically spend 1-hour resolving L1 cases and 4 hours resolving L2 cases. Finally, they work as Online Drivers for about 2 hours a day per average.

The ITHD manager earns a total compensation package of $100,000. She spends her time supervising the three technicians and assisting them in performing their duties. She allocates her time supervising each technician equally.

Each employee is assigned a technology package, which consists of a computer and a telephone. The technology package annually costs the department $3000 per employee.

The ITHD suite is an 1,000 sq ft space that the college charges the department $35,000 per year. all utilities are included in the monthly charge. the space has a 400 sq ft teaching space for class drivers (note, L1 & L2 cases are all resolved over email/phone). In addition, each technician has a 100 sq ft cubicle and the manager has a 200 sq ft office.

Finally, Belmont has outsourced its network infrastructure, so the college is completely cloud-based and pays a standard rate per terabyte (TB) for traffic usage. ITHD's annual cloud computing charge is $50,000 for 500B. The network data is consumed by L2 cases and online driving. L1 cases are very simple, and thus, only use 0.025TB (25GB) per case. However, an average L2 case consumes 0.2TB (200GB), while class driving uses 1TB per course.

In applying ABM, ITHD would like to understand what resources are consumed by each activity.

**Identify and calculate the costs consumed by the "class driver case" activity."