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Just need help with part B Middler Corporation, a manufacturer of electronics and communications systems, uses a service department charge system to charge profit centers
Just need help with part B
Middler 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 departnent. The table also indudes some assumed cost and activity base quantity information for each service for October CCS Service Category Help desk Network center Electronic mail Handheld Technology support Number of handheld devices issued One of the profit centers for Middler Corporation is the Communication Systems (COMM) sector. Assume the following information for the COMM sector: * The sector has 5,200 employees, of whom 25% are office employees. * Almost all office employees (99%) have a computer on the network. Budgeted Activity Base Quantity Activity Base Number of calls Number of devices monitored Number of user accounts Budgeted Cost 160,000 735,000 100,000 124,600 3,200 8,900 One hundred percent of the employees with a computer also have an e-mail account. The average number of help desk calls for October was 1.2 calls per individual with a computer. There are 600 additional printers, servers, and peripherals on the network beyond the personal computers All the nonoffice employees have been issued a handheld device. a. Determine the service charge rate for the four CCS service categories for October. CCS Service Category Help desk Network center Electronic mail Handheld technology b. Determine the charges to the COMM sector for the four CCS service categories for October October charges to the COMM sector Help desk charge Network center charge Electronic mail charge Local voice support charge Service Charge Rate 50 Per call 75 Per device monitored 10 Per user or e-mail account 14 Per deviceStep by Step Solution
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