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eBook Show Me How Office 365 Question Content Area Service department charges and activity bases Varney Corporation, a manufacturer of electronics and communications systems, allocates
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Office 365
Question Content Area
Service department charges and activity bases
Varney Corporation, a manufacturer of electronics and communications systems, allocates Computing and Communications Services Department (CCS) costs to profit centers. The following table lists the types of services and cost drivers for each service. The table also includes the budgeted cost and quantity for each service for August.
CCS Service Category | Cost Drivers | Budgeted Cost | Budgeted Quantity of Services | ||
Help desk | Number of calls | $99,200 | 3,200 | ||
Network center | Number of devices monitored | 134,400 | 1,600 | ||
Electronic mail | Number of user accounts | 180,200 | 5,300 | ||
Smartphone support | Number of smartphones issued | 112,500 | 4,500 |
One of the profit centers for Varney Corporation is the Communication Systems (COMM) sector. Assume the following information for COMM:
COMM has 2,100 employees, of whom 25% are office employees.
All the office employees have been issued a smartphone, and 93% of them have a computer on the network.
One hundred percent of the employees with a computer also have an email account.
The average number of help desk calls for August was 0.8 calls per individual with a computer.
There are 450 additional printers, servers, and peripherals on the network beyond the personal computers.
This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.
Open spreadsheet
- Compute the service allocation rate for each of CCSs services for August. Round your answers to the nearest dollar.
CCS Service Category | Service Allocation Rate |
Help desk | $fill in the blank 2 Per callPer device monitoredPer employeePer smartphone issuedPer user or email accountPer call |
Network center | $fill in the blank 4 Per callPer device monitoredPer employeePer smartphone issuedPer user or email accountPer device monitored |
Electronic mail | $fill in the blank 6 Per callPer device monitoredPer employeePer smartphone issuedPer user or email accountPer user or email account |
Smartphone support | $fill in the blank 8 Per callPer device monitoredPer employeePer smartphone issuedPer user or email accountPer smartphone issued |
- Compute the allocation of CCSs services to COMM for August. Round your answers to the nearest dollar.
August allocations to the COMM: | |
Help desk charge | $fill in the blank 10 |
Network center charge | $fill in the blank 11 |
Electronic mail charge | $fill in the blank 12 |
Smartphone support charge | $fill in the blank 13 |
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