The consultants' analysis of activities revealed the following breakdown of the IT Department's 2016 annual budget of £9,979,000. Activity Design of divisional software IT training for staff Maintenance of computers Maintenance of divisional software Maintenance of IT security systems Maintenance of tablets and smart phones Telephone IT support IT and systems support costs £700,000 £2,880,000 £1,140,000 £1,750,000 £2,600,000 £468,000 £441,000 Total: £9,979,000 The consultants have also identified the three Divisions' usage of the services provided by the IT Department in 2016 in relation to the above budget. Division South Midland North Number of Staff 1,200 700 600 Average number of IT telephone queries made per staff member 3 Divisional software maintenance hours 300 1,700 1,500 Number of computers 1,500 1,300 1,000 Number of divisional software 30 95 75 Number of tablets and smart phones 1,300 1,500 1,100 Number of IT training hours run 1,600 1,400 1,800 IT security systems maintenance hours 600 1,000 1,000

The consultants' analysis of activities revealed the following breakdown of the IT Department's 2016 annual budget of £9,979,000. Activity Design of divisional software IT training for staff Maintenance of computers Maintenance of divisional software Maintenance of IT security systems Maintenance of tablets and smart phones Telephone IT support IT and systems support costs £700,000 £2,880,000 £1,140,000 £1,750,000 £2,600,000 £468,000 £441,000 Total: £9,979,000 The consultants have also identified the three Divisions' usage of the services provided by the IT Department in 2016 in relation to the above budget. Division South Midland North Number of Staff 1,200 700 600 Average number of IT telephone queries made per staff member 3 Divisional software maintenance hours 300 1,700 1,500 Number of computers 1,500 1,300 1,000 Number of divisional software 30 95 75 Number of tablets and smart phones 1,300 1,500 1,100 Number of IT training hours run 1,600 1,400 1,800 IT security systems maintenance hours 600 1,000 1,000

Name: Calculate the amount of IT Department’s costs that will be recharged t
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Description: Calculate the amount of IT Department’s costs that will be recharged to each of the three Divisions by using an activity-based costing approach? The consultants' analysis of activities revealed the following breakdown of the ITDepartment's 2016 annua

Managerial Accounting

15th Edition

ISBN:9781337912020

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

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

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 9E: Nozama.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost...

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