Support Department Allocations And Cost Drivers

One of the profit centers for Varney Corporation is the Communication Systems (COMM) division. Assume the following information for COMM:

• COMM has 2,500 employees, of whom 20% are office employees.
• All of the office employees have been issued a smartphone, and 95% of them have a computer on the network.
• One hundred percent of the employees with a computer also have an email account.
• The average number of help desk calls for August was 0.6 call per individual with a computer.
• There are 400 additional printers, servers, and peripherals on the network beyond the personal computers.

Support Department Allocations And Cast Drivers Vamry Corporation, a manufacturer af electronics and communication systems, allocates Computing and Communications Services Department (CCS) Coats to profit centers. The following table lists the types of services and cast drivers for cach service. The table also includes the budgeted cost and quantity for each service for August. Budgeted Quantity CCS Services Cost Drivers Budgeted Cost of Services Help desk Number of calls $90,000 3,600 Network center Number of devices 120,0XIO 1,500 Electronic mail Number of user accounts 160,000 5,000 Smartphone support Number of smartphones issued 72,000 4,000 One of the profit centers for Vamey Corporation is the Communication Systems (CDMM) division. Assume the following information for COMM: . COMM has 2,500 employees, of wham 20% are office employees. All of the office employees have been issued a smartphone, and 95% of them have a computer on the network. One hundred percent of the employees with a computer also have an email account . The average number of help desk calls for August was 0.6 call per individual with a camauter. . There are 400 additional printers, servers, and peripherals on the network beyond the personal computers. a. Compute the service allocation rate for each of CCS's services for August CCS Service Category Service Charge Rate Help desk $ $ Network center Electronic mail $ Smartphone support $ b. Compute the allocation of OC5's services to COMM for August August charges to the COMM sector Help desk charge Network center charge IU! Electronic mail charge Smartphone support charge