Middler Corporation, a manufacturer of electronics and communications systems, uses a service department charge system to charge profit centers with Computing and Communications Services (CCS) service department costs. The following table identifies an abbreviated list of service categories and activity bases used by the CCS department. The table also includes some assumed cost and activity base quantity information for each service for October. CCS Service Category Activity Base Budgeted Cost Budgeted Activity Base Quantity Help desk Number of calls $103,360 3,200 Network center Number of devices monitored 634,375 8,750 Electronic mail Number of user accounts 78,100 7,100 Smartphone support Number of smartphones issued 144,320 8,200 One of the profit centers for Middler Corporation is the Communication Systems (COMM) sector. Assume the following information for the COMM sector: • The sector has 3,000 employees, of whom 30% are office employees. • All the office employees have been issued a smartphone, and 70% of them have a computer on the network. • 90 percent of the employees with a computer also have an e-mail account. • The average number of help desk calls for October was 1 call per individual with a computer. • There are 270 additional printers, servers, and peripherals on the network beyond the personal computers. a. Determine the service charge rate for the four CCS service categories for October. Round your answers to two decimal places. CCS Service Category Service Charge Rate Help desk $fill in the blank 1 Network center $fill in the blank 3 Electronic mail $fill in the blank 5 Smartphone support $fill in the blank 7 b. Determine the charges to the COMM sector for the four CCS service categories for October. Round your answers to the nearest dollar amount. October charges to the COMM sector: Help desk charge $fill in the blank 9 Network center charge $fill in the blank 10 Electronic mail charge $fill in the blank 11 Smartphone support charge $fill in the blank 12

Middler Corporation, a manufacturer of electronics and communications systems, uses a service department charge system to charge profit centers with Computing and Communications Services (CCS) service department costs. The following table identifies an abbreviated list of service categories and activity bases used by the CCS department. The table also includes some assumed cost and activity base quantity information for each service for October. CCS Service Category Activity Base Budgeted Cost Budgeted Activity Base Quantity Help desk Number of calls $103,360 3,200 Network center Number of devices monitored 634,375 8,750 Electronic mail Number of user accounts 78,100 7,100 Smartphone support Number of smartphones issued 144,320 8,200 One of the profit centers for Middler Corporation is the Communication Systems (COMM) sector. Assume the following information for the COMM sector: • The sector has 3,000 employees, of whom 30% are office employees. • All the office employees have been issued a smartphone, and 70% of them have a computer on the network. • 90 percent of the employees with a computer also have an e-mail account. • The average number of help desk calls for October was 1 call per individual with a computer. • There are 270 additional printers, servers, and peripherals on the network beyond the personal computers. a. Determine the service charge rate for the four CCS service categories for October. Round your answers to two decimal places. CCS Service Category Service Charge Rate Help desk $fill in the blank 1 Network center $fill in the blank 3 Electronic mail $fill in the blank 5 Smartphone support $fill in the blank 7 b. Determine the charges to the COMM sector for the four CCS service categories for October. Round your answers to the nearest dollar amount. October charges to the COMM sector: Help desk charge $fill in the blank 9 Network center charge $fill in the blank 10 Electronic mail charge $fill in the blank 11 Smartphone support charge $fill in the blank 12

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter5: Support Department And Joint Cost Allocation

Section: Chapter Questions

Problem 10E: Support department cost allocation comparison Refer to your answers to Exercises 7-9. Compare the...

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Service Department Charges and Activity Bases

CCS Service Category	Activity Base	Budgeted Cost	Budgeted Activity Base Quantity
Help desk	Number of calls	$103,360		3,200
Network center	Number of devices monitored	634,375		8,750
Electronic mail	Number of user accounts	78,100		7,100
Smartphone support	Number of smartphones issued	144,320		8,200

One of the profit centers for Middler Corporation is the Communication Systems (COMM) sector. Assume the following information for the COMM sector:

• The sector has 3,000 employees, of whom 30% are office employees.

• All the office employees have been issued a smartphone, and 70% of them have a computer on the network.

• 90 percent of the employees with a computer also have an e-mail account.

• The average number of help desk calls for October was 1 call per individual with a computer.

• There are 270 additional printers, servers, and peripherals on the network beyond the personal computers.

a. Determine the service charge rate for the four CCS service categories for October. Round your answers to two decimal places.

CCS Service Category	Service Charge Rate
Help desk	$fill in the blank 1
Network center	$fill in the blank 3
Electronic mail	$fill in the blank 5
Smartphone support	$fill in the blank 7

b. Determine the charges to the COMM sector for the four CCS service categories for October. Round your answers to the nearest dollar amount.

October charges to the COMM sector:
Help desk charge	$fill in the blank 9
Network center charge	$fill in the blank 10
Electronic mail charge	$fill in the blank 11
Smartphone support charge	$fill in the blank 12

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