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 $133,760 3,200 Network center Number of devices monitored 748,250 10,250 Electronic mail Number of user accounts 70,950 6,450 Handheld technology support Number of handheld devices issued 168,960 9,600 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 1,000 employees, of whom 30% are office employees. Almost all office employees (70%) have a computer on the network. 95 percent of the employees with a computer also have an e-mail account. The average number of help desk calls for October was 1 calls per individual with a computer. There are 220 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. Round your answers to two decimal places. CCS Service Category Service Charge Rate Help desk $ Network center $ Electronic mail $ Handheld technology support $ 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 $ Network center charge $ Electronic mail charge $ Handheld technology support

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...

See similar textbooks

Related questions

Concept explainers

Question

Service Department Charges and Activity Bases

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	$133,760		3,200
Network center	Number of devices monitored	748,250		10,250
Electronic mail	Number of user accounts	70,950		6,450
Handheld technology support	Number of handheld devices issued	168,960		9,600

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 1,000 employees, of whom 30% are office employees.
Almost all office employees (70%) have a computer on the network.
95 percent of the employees with a computer also have an e-mail account.
The average number of help desk calls for October was 1 calls per individual with a computer.
There are 220 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. Round your answers to two decimal places.

CCS Service Category	Service Charge Rate
Help desk	$
Network center	$
Electronic mail	$
Handheld technology support	$

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	$
Network center charge	$
Electronic mail charge	$
Handheld technology support	$

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 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.

Similar questions