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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
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 Service Budgeted Quantity of Services Category Cost Drivers Budgeted Cost Help desk Number of calls $52,800 3,300 Network center Number of devices monitored 226,800 2,800 Electronic mail Number of user accounts 174,800 4,600 Smartphone support Number of smartphones issued 127,400 4,900 One of the profit centers for Varney Corporation is the Communication Systems (COMM) sector. Assume the following information for COMM: COMM has 2,700 employees, of whom 40% are office employees. All the office employees have been issued a smartphone, and 91% 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 calls per individual with a computer. There are 440 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. Round your answers to the nearest dollar. CCS Service Category Service Allocation Rate Help desk $ Network center $ Electronic mail Smartphone support b. Compute the allocation of CCS's services to COMM for August. Round your answers to the nearest dollar. August allocations to the COMM: Help desk charge $ Network center charge $ Electronic mail charge $ Smartphone support charge a. Compute the service allocation rate for each of CCS's services for August. Round your answers to the nearest dollar. CCS Service Category Service Allocation Rate Help desk Network center Electronic mail Per call Per device monitored Per employee Per smartphone issued Per user or email account Smartphone support b. Compute the allocation of CCS's services to COMM for August. Round your answers to the nearest dollar. August allocations to the COMM: Help desk charge $ Network center charge $ Electronic mail charge Smartphone support charge
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