Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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)

image text in transcribed

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 February CCS Service Assumed Activity Base Quantity Category Activity Base Assumed Cost $ $86,490 Help desk Number of calls 3,100 Network center Number of devices monitored 690,000 10,000 Electronic mail 63,900 7,100 Number of user accounts Number of phone extensions Local voice support 135,360 9,400 One of the profit centers for Harris Corporation is the Electronics Systems sector. Assume the following information for the Electronics sector: The sector has 4,000 employees, of whom 50% are office employees. All the office employees have a phone, and 70% of them have a computer on the network. 90% of the employees with a computer also have an e-mail account. The average number of help desk calls for April was 1 call per individual with a computer. There are 290 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 February. Round answers to the nearest cent. CCS Service Category Service Charge Rate Help desk: per call Network center: $ $ per device monitored Electronic mail: $ $ per e-mail account - Local voice support: per phone extension b. Determine the charges to the Electronics sector for the four CCS service categories for February. Help desk: Network center: Electronic mail: : Local voice support: Feedback Check My Work . a. Divide the assumed cost by the assumed activity base quantity for each category. b. Help Desk charge = Service charge rate from (a) x Number of employees x Percentage of office employees x Percentage with a computer x Number of calls. Follow a similar process for each of the other three categories

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting, Representation And Responsibility

Authors: Niels Joseph Lennon

1st Edition

0367540436, 9780367540432

More Books

Students also viewed these Accounting questions

Question

>,

Answered: 1 week ago

Question

Develop a preliminary focus for your research.

Answered: 1 week ago

Question

What is Larmors formula? Explain with a suitable example.

Answered: 1 week ago

Question

Many different people can conduct performance appraisals.

Answered: 1 week ago