Question

Service Department Charges and Activity Bases Middler Corporation, a manufacturer of electronics and communications systems, ses a service department change system to change of cantars with computing and Communications Services (CCS) sarvice department costs. The following table identifies an abbreviated list of service categories and activity has sind by the CCS department. The table is includes som med att and activity has Quantity information for each service for October CCS Service Budgeted Activity Category Activity Base Budgeted Cost Base Quantity Helpdesk Number of calls $160,000 3.200 Network center Number of devices munitored 735,000 9,800 Electronic mail Number of user accounts 100.000 10.000 Handheld Technology support Number of handeld devices issued 174,600 8.900 One of the profit centers for Middler Corporation is the communication Systems COMM) Sector. Assume the following information for the COMM Sector + The sector tres 5.200 employees uſ wium 255 are offre employees. + Almost all office employees (999) have computer on the newurk. + One Hundred perceril of the employees with a compuler also have an e-mail BULUUPIL + The average number of hy desk calls for October was 1.2 cells per individual with a compuler + There are 100 additional pris, es, and peripherals on the work beyond the personal compulers • All the runollice employees have been issued a handheld device a. Determine the service charge for the four C o rvien categories for October CCS Service Category Service Charge Rate Heluk 50 Per call Network center 75 Per device monitored Electronic mall 10 Per user or e-mail account Handheld technology 14 Per device b. Determine Lie charges to the COMM sector for the four service celeyories for Outuber October charges to the COMM sector Helo vesk charge 77,220 Network center charge 139,000 X Clectronical charge 12,870 ✓ Local voice support charge

Answer 1

Solution a:

Computation of Service Charge rate for CCS department - Middler Corporation
CCS Service Category	Budgeted Cost	Activity Base	Usage of Activity Base	Activity Rate
					Help Desk	$160,000.00	Number of Calls	3200	$50.00
Network Center	$735,000.00	Number of devices monitored	9800	$75.00
Electronic Email	$100,000.00	Number of user accounts	10000	$10.00
Handhold technology support	$124,600.00	Nos of handhandled device issued	8900	$14.00

Solution b:

October charges to COMM sector
CCS Service Category	Activity base	Quanity of activity Base		Activity Rate	Allocated charges
		Details	Quantity
Help Desk	Number of Calls	5200*25%*99%*1.2	1544.4	$50.00	$77,220.00
Network Center	Number of devices monitored	(5200*25%*99%)+600	1887	$75.00	$141,525.00
Electronic Email	Number of user accounts	5000*25%*99%*100%	1287	$10.00	$12,870.00
Handhold technology support	Nos of handhandled device issued	5200*75%	3900	$14.00	$54,600.00