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Service Department Charges and Activity Bases Middler Corporation, a manufacturer of electronics and communications systems, uses a service department charge system to charge profit centers
Service Department Charges and Activity Bases 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 department. The table also includes some assumed cost and activity base quantity information for each service for October Budgeted Activity Base Quantity CCS Service Budgeted Activity Base Number of calls Number of devices Number of user accounts Number of handheld devices issued Category Cost Help desk Network center Electronic mail Handheld technology support One of the profit centers for Middler Corporation is the Communication Systems (COMM) sector. Assume the following information for the COMM sector: $131,860 605,200 53,550 120,960 3,800 8,900 5,950 8,400 monitored . The sector has 5,000 employees, of whom 40% are office employees Almost all office employees (70%) 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 October was 1 calls per individual with a computer. . There are 320 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. Round your answers to two decimal places. a. Determine the service charge rate for the four CCS service categories for October. Round your answers to two decimal places. CCS Service Category Help desk Network center Electronic mail Handheld technology support b. Determine the charges to the COMM sector for the four CCS service categories for October. October charges to the COMM sector: Service Charge Rate Per call Per device monitored Per user or e-mail account Per device Help desk charge Network center charge Electronic mail charge Handheld technology support
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