Answered step by step
Verified Expert Solution
Question
1 Approved Answer
service Departmnt Allocations and Cost Drivers Middler Corporation, a manufacturer of electronics and communications systems, allocates Computing and Communications Services (CCS) service department costs to
service Departmnt Allocations and Cost Drivers Middler Corporation, a manufacturer of electronics and communications systems, allocates Computing and Communications Services (CCS) service department costs to profit centers. The following table lists service categories and cost drivers used by the cCS department. The table also includes cost and cost drivers for each service for October. 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. - 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. b. Determine the allocations to the COMM sector for the four CCS service categories for October. Feedback Fheck My Work a. Divide the budgeted cost by the budgeted activity base quantity for each category. b. Determine the Help Desk charge by multiplying the rate from (a) by the number of employees times the percentage of office employees times the percentage with a computer times the 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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started