Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Vavth infonmatics provides data processing services to satal buinesses in the forthent. For rears, the company has allocited the cost of the dats starape department
Vavth infonmatics provides data processing services to satal buinesses in the forthent. For rears, the company has allocited the cost of the dats starape department using the number of tape mounts thow many times a data tape in losded onto the computer s tape divel. This rate was tied elosely to direct laber usage, since the more tapes that were mounted, the more operatons that wert neepded to mount them. Under the current syitem, a customer is charged $2.00 each time a tape is nounted Three months ago, the company implemented a new data storage system that uses an automated tape lbrary. As a result. operatori are no longer needed to mount the tapes. Some data that is used only temoorarly is stared on a computer disk and never tr anderted to tape. With the newsystem, the departinent's payroll has dropped frem 20 operators to 3. Emma Davi, manager of the data centec, believes that the new system's cods are more the resuat of data storage than of number of tape mounts. She has sathered the following inforimation on the operation of the starage system which is expected to cont $340818 per year to operate. (a)(3) (a)(ii) Uine this rate, determine the data storase costs that should be allocated to each customer. (Resund anvern ta 2 decind places es. 15.25) eTextbook and Media Calculate the activity cost rate for the data storage department using the number of tape mounts as the activity driver. (Round answer to 2 decimal places, ey. 15.25.) Activity cost rate per tape mount
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started