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 | $141,360 | 3,800 | ||
Network center | Number of devices monitored | 719,050 | 9,850 | ||
Electronic mail | Number of user accounts | 55,500 | 5,550 | ||
Smartphone support | Number of smartphones issued | 148,800 | 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 5,000 employees, of whom 40% are office employees.
• All the office employees have been issued a smartphone, and 80% of them 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 call per individual with a computer.
• There are 270 additional printers, servers, and peripherals on the network beyond the personal computers.
a. Determine the service charge rate for the four CCS service categories for October. Round your answers to two decimal place
CCS Service Category | Service Charge Rate |
Help desk | $ |
Network center | $ |
Electronic mail | $ |
Smartphone support | $ |
b. Determine the charges to the COMM sector for the four CCS service categories for October. Round your answers to the nearest dollar amount.
October charges to the COMM sector: | |
Help desk charge | $ |
Network center charge | $ |
Electronic mail charge | $ |
Smartphone support charge | $ |
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 | $141,360.00 | Number of Calls | 3800 | $37.20 |
Network Center | $719,050.00 | Number of devices monitored | 9850 | $73.00 |
Electronic Email | $55,500.00 | Number of user accounts | 5550 | $10.00 |
Smartphone Support | $148,800.00 | Nos of smartphone issued | 9300 | $16.00 |
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 | 5000*40%*80%*1 | 1600 | $37.20 | $59,520.00 |
Network Center | Number of devices monitored | (5000*40%*80%)+270 | 1870 | $73.00 | $136,510.00 |
Electronic Email | Number of user accounts | 5000*40%*80%*95% | 1520 | $10.00 | $15,200.00 |
Smartphone Support | Nos of smartphone issued | 5000*40% | 2000 | $16.00 | $32,000.00 |
Middler Corporation, a manufacturer of electronics and communications systems, uses a service department charge system t...
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 $151,640...
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...
Service Department Charges and Activity Bases Middler Corporation, a manufacturer of electronics and communications systems, uses a service department charge system to charge proft 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 Budgeted Activity Base Quantity Categony Activity Base Number of...
Service Department Charges and Activity Bases Harold 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 April. CCS Service Budgeted Activity Category Activity Base Budgeted Cost Base Quantity...
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...
Service Department Charges and Activity Bases Harold 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 April. CCS Service Category Activity Base Budgeted Cost Budgeted Activity Base Quantity...
t ugil ils Sales are lower! EX 8-6 Service department charges and activity bases OBJ.3 Middler Corpo Corporation, a manufacturer of electronics and communications systems, uses a service department charge system to charge pron munications Services (CCS) service department cos! ment charge system to charge profit centers with Computing and Com- abbreviated list of service categories and activity base ices (CCS) service department costs. The following table identifies an of service categories and activity bases used by the CCS department....
hello I need help woth the following questions.. please show your work 1. 2. 3. 1 2 3 Harold 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 identifes 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...
Title: Partners Health Care Systems (PHS): Transforming Health Care Services Delivery through Information Management According to government sources, U.S. expenditures on health care in 2009 reached nearly $2.4 trillion dollars ($2.7 trillion by the end of 2010).[1] Despite this vaunting national level of expenditure on medical treatment, death rates due to preventable errors in the delivery of health services rose to approximately 98,000 deaths in 2009.[2] To address the dual challenges of cost control and quality improvement, some have argued...
Discussion questions 1. What is the link between internal marketing and service quality in the airline industry? 2. What internal marketing programmes could British Airways put into place to avoid further internal unrest? What potential is there to extend auch programmes to external partners? 3. What challenges may BA face in implementing an internal marketing programme to deliver value to its customers? (1981)ǐn the context ofbank marketing ths theme has bon pururd by other, nashri oriented towards the identification of...