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. CCS Services Cost Drivers Budgeted Cost Budgeted Quantity of Services Help desk Number of calls $72,000 3,600 Network center Number of devices 168,000 2,000 Electronic mail Number of user accounts 166,500 4,500 Smartphone support Number of smartphones issued 131,200 4,100 One of the profit centers for Varney Corporation is the Communication Systems (COMM) division. Assume the following information for COMM: COMM has 3,500 employees, of whom 35% are office employees. All of the office employees have been issued a smartphone, and 96% of them have a computer on the network. Of the employees with a computer, Ninety% of them also have an email account. The average number of help desk calls for August was 0.6 calls per individual with a computer. There are 420 additional printers, servers, and peripherals on the network beyond the personal computers. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet a. Compute the service allocation rate for each of CCS’s services for August. CCS Service Category Service Charge Rate Help desk $fill in the blank 2 Network center $fill in the blank 4 Electronic mail $fill in the blank 6 Smartphone support $fill in the blank 8 b. Compute the allocation of CCS’s services to COMM for August. Round your answers to the nearest dollar. Line Item Description Amount Help desk charge $fill in the blank 10 Network center charge $fill in the blank 11 Electronic mail charge $fill in the blank 12 Smartphone support charge $fill in the blank 13

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. CCS Services Cost Drivers Budgeted Cost Budgeted Quantity of Services Help desk Number of calls $72,000 3,600 Network center Number of devices 168,000 2,000 Electronic mail Number of user accounts 166,500 4,500 Smartphone support Number of smartphones issued 131,200 4,100 One of the profit centers for Varney Corporation is the Communication Systems (COMM) division. Assume the following information for COMM: COMM has 3,500 employees, of whom 35% are office employees. All of the office employees have been issued a smartphone, and 96% of them have a computer on the network. Of the employees with a computer, Ninety% of them also have an email account. The average number of help desk calls for August was 0.6 calls per individual with a computer. There are 420 additional printers, servers, and peripherals on the network beyond the personal computers. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet a. Compute the service allocation rate for each of CCS’s services for August. CCS Service Category Service Charge Rate Help desk $fill in the blank 2 Network center $fill in the blank 4 Electronic mail $fill in the blank 6 Smartphone support $fill in the blank 8 b. Compute the allocation of CCS’s services to COMM for August. Round your answers to the nearest dollar. Line Item Description Amount Help desk charge $fill in the blank 10 Network center charge $fill in the blank 11 Electronic mail charge $fill in the blank 12 Smartphone support charge $fill in the blank 13

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...

See similar textbooks

Related questions

Question

Support Department Allocations And Cost Drivers

CCS Services	Cost Drivers	Budgeted Cost	Budgeted Quantity of Services
Help desk	Number of calls	$72,000	3,600
Network center	Number of devices	168,000	2,000
Electronic mail	Number of user accounts	166,500	4,500
Smartphone support	Number of smartphones issued	131,200	4,100

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

COMM has 3,500 employees, of whom 35% are office employees.
All of the office employees have been issued a smartphone, and 96% of them have a computer on the network.
Of the employees with a computer, Ninety% of them also have an email account.
The average number of help desk calls for August was 0.6 calls per individual with a computer.
There are 420 additional printers, servers, and peripherals on the network beyond the personal computers.

This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.

Open spreadsheet

a. Compute the service allocation rate for each of CCS’s services for August.

CCS Service Category	Service Charge Rate
Help desk	$fill in the blank 2
Network center	$fill in the blank 4
Electronic mail	$fill in the blank 6
Smartphone support	$fill in the blank 8

b. Compute the allocation of CCS’s services to COMM for August. Round your answers to the nearest dollar.

Line Item Description	Amount
Help desk charge	$fill in the blank 10
Network center charge	$fill in the blank 11
Electronic mail charge	$fill in the blank 12
Smartphone support charge	$fill in the blank 13

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 4 steps with 8 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.