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
Support Department Allocations And Cost Drivers
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.
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 |
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 8 images