Reference no: EM13948531

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
Help desk	Number of calls	$94,800		2,400
Network center	Number of devices monitored	620,550		9,850
Electronic mail	Number of user accounts	71,500		6,500
Local voice support	Number of phone extensions	163,680		9,300

One of the profit centers for Harold Corporation is the Communication Systems (COMM) sector. Assume the following information for the COMM sector:

The sector has 2,000 employees, of whom 40% are office employees.

All the office employees have a phone, and 80% of them 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 April was 1 call per individual with a computer.

There are 230 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 April. Round your answers to two decimal places.

CCS Service Category	Service Charge Rate
Help desk	$ _____________
Network center	$ ____________
Electronic mail	$____________
Local voice support	$____________

b. Determine the charges to the COMM sector for the four CCS service categories for April.

Help desk charge                    $___________

Network center charge            $__________

Electronic mail charge            $__________

Local voice support charge     $____________