ervice 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 $132,650 3,500 Network center Number of devices monitored 630,400 9,850 Electronic mail Number of user accounts 64,800 7,200 Handheld technology support Number of handheld devices issued 133,920 9,300 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 50% are office employees. Almost all office employees (70%) 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 calls per individual with a computer. There are 260 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 $fill in the blank 1 Network center $fill in the blank 3 Electronic mail $fill in the blank 5 Handheld technology support $fill in the blank 7 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 $fill in the blank 9 Network center charge $fill in the blank 10 Electronic mail charge $fill in the blank 11 Handheld technology support $fill in the blank 12

ervice 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 $132,650 3,500 Network center Number of devices monitored 630,400 9,850 Electronic mail Number of user accounts 64,800 7,200 Handheld technology support Number of handheld devices issued 133,920 9,300 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 50% are office employees. Almost all office employees (70%) 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 calls per individual with a computer. There are 260 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 $fill in the blank 1 Network center $fill in the blank 3 Electronic mail $fill in the blank 5 Handheld technology support $fill in the blank 7 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 $fill in the blank 9 Network center charge $fill in the blank 10 Electronic mail charge $fill in the blank 11 Handheld technology support $fill in the blank 12

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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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	$132,650		3,500
Network center	Number of devices monitored	630,400		9,850
Electronic mail	Number of user accounts	64,800		7,200
Handheld technology support	Number of handheld devices issued	133,920		9,300

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 50% are office employees.
Almost all office employees (70%) 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 calls per individual with a computer.
There are 260 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	$fill in the blank 1
Network center	$fill in the blank 3
Electronic mail	$fill in the blank 5
Handheld technology support	$fill in the blank 7

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	$fill in the blank 9
Network center charge	$fill in the blank 10
Electronic mail charge	$fill in the blank 11
Handheld technology support	$fill in the blank 12

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