Concept explainers
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 |
Trending nowThis is a popular solution!
Step by stepSolved in 3 steps with 2 images
- Arctica manufactures snowmobiles and ATVs. These products are made in different departments, and each department has its own manager. Each responsibility performance report includes only those costs that the department manager can control: direct materials, direct labor, supplies used, and utilities. Budget Actual For Year Ended December 31 Direct materials Direct labor Department manager salaries Snowmobile $ 19,610 10,500 ATV $ 27,600 Snowmobile $ 19,520 ATV $ 28,930 4,400 20,600 5,300 10,770 21,350 4,500 Supplies used Utilities Rent 3,410 370 5,800 910 550 6,400 3,270 340 5,400 4,500 940 510 6,400 Totals $ 44,090 $ 61,360 $ 43,800 $ 62,630 Exercise 24-1 (Algo) Responsibility accounting performance report LO P1 Prepare a responsibility accounting performance report for the snowmobile department. Note: Under budget amounts should be indicated by a minus sign. Responsibility Accounting Performance Report Controllable Costs Manager, Snowmobile Department For Year Ended December 31…arrow_forwardPlease help me Thankyou.arrow_forwardRequired information Use the following information for the Quick Studies below. (Algo) Rafner Manufacturing has the following budgeted data for its two production departments. Budgeted Data Overhead cost Direct labor hours Machine hours. Assembly 12,600 direct labor hours 5,400 machine hours Department Assembly Finishing Total $ 1,461,600 QS 17-8 (Algo) Allocating overhead with departmental rates LO P2 Allocate overhead to a job that uses 76 direct labor hours in the Assembly department and uses 62 machine hours in the Finishing department. Departmental Overhead Rate Hours Used $939,400 Finishing 19,400 direct labor hours 15,400 machine hours $ $ Overhead Allocated 0 0 0arrow_forward
- i post these que. second time please provide workingarrow_forwardDirect Method Eilers Company has two producing departments and two support departments. The following budgeted data pertain to these four departments: Support Departments Producing Departments General Factory Receiving Assembly Finishing Direct overhead $430,000 $170,000 $45,000 $76,000 Square footage 2,500 5,000 5,000 Number of receiving orders 320 1,900 1,200 Direct labor hours 28,000 45,000 The company has decided to simplify its method of allocating support service costs by switching to the direct method. Required: 1. Allocate the costs of the support departments to the producing departments using the direct method. Round allocation ratios to four significant digits. Round allocated costs to the nearest dollar. Use the rounded values for subsequent calculations. Allocation ratios: Assembly Finishing Square footage Number of receiving ordersarrow_forwardSubject - account Please help me. Thankyou.arrow_forward
- Please help me with all answersarrow_forwardBike-O-Rama produces two bike models: Voltage and EasyRider. Departmental overhead data follow. Department Fabricating Assembly Budgeted Cost $ 147,000 145,200 Allocation Base Machine hours (MH) Direct labor hours (DLH) Budgeted Usage 9,800 MH 3,300 DLH Required: 1. Compute departmental overhead rates using (a) machine hours to allocate budgeted Fabricating costs and (b) direct labor hours to allocate budgeted Assembly costs. 2. The company reports the following actual production usage data. Compute the overhead cost per unit for each model. Voltage 2.0 MH 2.0 DLH EasyRider 4.0 MH 0.5 DLH 3. The company reports additional information below. For each model, compute the product cost per unit. Machine hours per unit Direct labor hours per unit Selling Price $ 290 195 Per Unit Voltage EasyRider Direct Materials $ 108 98 4. For each model, compute gross profit per unit (selling price per unit minus product cost per unit). Direct Labor $ 47 20 Complete this question by entering your answers…arrow_forwardQuestion Content Area Dawson Company manufactures small table lamps and desk lamps. The following shows the activities per product and the total overhead information: Line Item Description Units Setups Inspections Assembly (dlh) Small table lamps 4,000 3,200 9,000 41,200 Desk lamps 7,100 6,400 15,000 41, 200 Activity Total Activity - Base Usage Budgeted Activity Cost Setups 9, 600 $ 86,400 Inspections 24,000 120,000 Assembly (dlh) 72,100 353, 290 The total factory overhead to be allocated to desk lamps is a. $167, 240 b. $334, 480 c. $602, 064 d. $434,824arrow_forward
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education