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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. One of the profit centers for Varney Corporation is the Communication Systems (COMM) division. Assume the following information for COMM: - COMM has 2,800 employees, of whom 25% are office employees. - All of the office employees have been issued a smartphone, and 95% 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 0.5 calls per individual with a computer. - There are 420 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
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