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Service Department Charges and Activity Bases Harold Corporation, a manufacturer of electronics and communications systems, uses a service department charge system to charge profit centers
Service Department Charges and Activity Bases Harold 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 April. CCS Service Category Budgeted Activity Activity Base Number of calls Number of devices monitored Number of user accounts Number of phone extensions Budgeted Cost Help desk Network center Electronic mail $84,040 697,000 S1,200 122,880 Base Quantity 2,200 10,250 6,400 9,600 Local voice support One of the profit centers for Harold Corporation is the Communication Systems (COMM) sector. Assume the following information for the COMM sector: * The sector has 5,000 employees, of whom 50% are office employees. * All the office employees have a phone, and 80% of them have a computer on the network. . 90 percent 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 270 additional printers, servers, and peripherals on the network beyond the ersonal computers. a. Determine the service charge rate for the four CCS service categories for April. Round your answers to two decimal places CCS Service Category Help desk Network center Electronic mail Local voice support b. Determine the charges to the COMM sector for the four CCS service categories for April. April charges to the COMM sector: Help desk charge Network center charge Electronic mail charge Local voice support charae Service Charge Rate
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