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Support Department Allocations And Cost Drivers Varney Corporation, a manufacturer of electronics and communications systems, allocates Computing and Communications Services Department (CCS) costs to
Support Department Allocations And Cost Drivers Varney Corporation, a manufacturer of electronics and communications systems, allocates Computing and Communications Services Department (CCS) costs to profit centers. The following table lists the types of services and cost drivers for each service. The table also includes the budgeted cost and quantity for each service for August CCS Services Help desk Cost Drivers Number of calls Network center Number of devices Electronic ma Number of user accounts Smartphone support Number of smartphones issued Budgeted Quantity Budgeted Cost of Services $90,000 3,600 120,000 1,500 160,000 72,000 5,000 4,000 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% ale 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. 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 Check My Work Previous Next 00
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