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 Budgeted Activity Category Activity Base Budgeted Cost Base Quantity Help desk Number of calls $160,000 3,200 Network center Number of devices monitored 735,000 9,800 Electronic mail Number of user accounts 100,000 10,000 Handheld Technology support Number of handheld devices issued 124,600 8,900 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 5,200 employees, of whom 25% are office employees. • Almost all office employees (99%) have a computer on the network. One hundred percent of the employees with a computer also have an e-mail account. The average number of help desk calls for October was 1.2 calls per individual with a computer. There are 600 additional printers, servers, and peripherals on the network beyond the personal computers. All the nonoffice employees have been issued a handheld device. a. Determine the service charge rate for the four CCS service categories for October. CCs Service Category Service Charge Rate Help desk $4 50 v Per call v Network center 24 75 V Per device monitored v Electronic mail $4 10 V Per user or e-mail account v Handheld technology $ 14 V Per device v b. Determine the charges to the COMM sector for the four CCS service categories for October. October charges to the COMM sector Help desk charge 93,600 x $ Network center charge 138,600 X $ Electronic mail charge 12,480 X $ Local voice support charge 18,200 x
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 Budgeted Activity Category Activity Base Budgeted Cost Base Quantity Help desk Number of calls $160,000 3,200 Network center Number of devices monitored 735,000 9,800 Electronic mail Number of user accounts 100,000 10,000 Handheld Technology support Number of handheld devices issued 124,600 8,900 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 5,200 employees, of whom 25% are office employees. • Almost all office employees (99%) have a computer on the network. One hundred percent of the employees with a computer also have an e-mail account. The average number of help desk calls for October was 1.2 calls per individual with a computer. There are 600 additional printers, servers, and peripherals on the network beyond the personal computers. All the nonoffice employees have been issued a handheld device. a. Determine the service charge rate for the four CCS service categories for October. CCs Service Category Service Charge Rate Help desk $4 50 v Per call v Network center 24 75 V Per device monitored v Electronic mail $4 10 V Per user or e-mail account v Handheld technology $ 14 V Per device v b. Determine the charges to the COMM sector for the four CCS service categories for October. October charges to the COMM sector Help desk charge 93,600 x $ Network center charge 138,600 X $ Electronic mail charge 12,480 X $ Local voice support charge 18,200 x
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter10: Evaluating Decentralized Operations
Section: Chapter Questions
Problem 6E: Varney Corporation, a manufacturer of electronics and communications systems, allocates Computing...
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Transcribed Image Text: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
Budgeted Activity
Category
Activity Base
Budgeted Cost
Base Quantity
Help desk
Number of calls
$160,000
3,200
Network center
Number of devices monitored
735,000
9,800
Electronic mail
Number of user accounts
100,000
10,000
Handheld Technology support Number of handheld devices issued
124,600
8,900
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 5,200 employees, of whom 25% are office employees.
Almost all office employees (99%) have a computer on the network.
One hundred percent of the employees with a computer also have an e-mail account.
The average number of help desk calls for October was 1.2 calls per individual with a computer.
There are 600 additional printers, servers, and peripherals on the network beyond the personal computers.
• All the nonoffice employees have been issued a handheld device.
a. Determine the service charge rate for the four CCS service categories for October.
CCS Service Category
Service Charge Rate
Help desk
$
50 v Per call v
Network center
75 v Per device monitored v
Electronic mail
$
10 v Per user or e-mail account v
Handheld technology
$
14 V Per device v
b. Determine the charges to the COMM sector for the four CCS service categories for October.
October charges to the COMM
sector
$
Help desk charge
93,600 x
$
Network center charge
138,600 x
$
Electronic mail charge
12,480 x
$
Local voice support charge
18,200 x
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