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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 profit
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. Budgeted Quantity CCS Services Cost Drivers Budgeted Cost of Services Help desk Number of calls $81,200 2,800 Network center Number of devices 210,000 2,800 Electronic mail Number of user accounts 123,200 4,400 Smartphone support Number of smartphones issued 72,000 4,500 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 35% are office employees. All of the office employees have been issued a smartphone, and 94% of them have a computer on the network. Of the employees with a computer, One hundred% of them also have an email account. The average number of help desk calls for August was 0.9 calls per individual with a computer. There are 440 additional printers, servers, and peripherals on the network beyond the personal computers. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. X Open spreadsheet a. Compute the service allocation rate for each of CCS's services for August. CCS Service Category Service Charge Rate Help desk 29 \\ per call 3 V Network center 75 v per device monitored Electronic mail 28 v per user or email account Smartphone support 16 v per smartphone issued b. Compute the allocation of CCS's services to COMM for August. Round your answers to the nearest dollar. August charges to the COMM sector Help desk charge Network center charge Electronic mail charge Smartphone support charge
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