D. ABC Company is a manufacturer of electronic parts and uses a service department charge system to charge profit centers. The following table identifies the service categories, costs and activity bases used by CCS Division. CCS Division Help desk Network center Electronic mail Local voice support Activity Base Number of calls Number of devices monitored Number of user account Number of phone extension C. d. e. Assumed Cost Assumed Activity Base Quantity 2,300 calls 9,450 devices 6,300 accounts 8,775 extensions 73,600 614,250 53,550 127,238 One of the profit centers for ABC Company is the Calamba Branch. Assume the following data for Calamba Branch: a. The branch has 4,000 employees of which 50% are office employees. b. All the office employees have a phone and 90% of them have a computer on the network. Ninety percent of the employees with a computer also have an email account. The average number of help desk calls for March 20X2 was .50 call per individual with a computer. There are 300 additional printers, services, and peripherals on the network beyond the personal computers. REQUIRED: Determine the charges for Calamba branch for the four CCS Division service categories in March 20x2.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter5: Support Department And Joint Cost Allocation
Section: Chapter Questions
Problem 1CMA
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D.
ABC Company is a manufacturer of electronic parts and uses a service department charge system to charge profit
centers. The following table identifies the service categories, costs and activity bases used by CCS Division.
CCS Division
Help desk
Network center
Electronic mail
Local voice support
Activity Base
Number of calls
Number of devices monitored
Number of user account
Number of phone extension
C.
d.
Assumed Cost
73,600
614,250
53,550
127,238
Assumed Activity Base Quantity
2,300 calls
9,450 devices
6,300 accounts
8,775 extensions
One of the profit centers for ABC Company is the Calamba Branch. Assume the following data for Calamba Branch:
a. The branch has 4,000 employees of which 50% are office employees.
b.
All the office employees have a phone and 90% of them have a computer on the network.
Ninety percent of the employees with a computer also have an email account.
The average number of help desk calls for March 20X2 was .50 call per individual with a computer.
e. There are 300 additional printers, services, and peripherals on the network beyond the personal computers.
REQUIRED: Determine the charges for Calamba branch for the four CCS Division service categories in March 20X2.
Transcribed Image Text:D. ABC Company is a manufacturer of electronic parts and uses a service department charge system to charge profit centers. The following table identifies the service categories, costs and activity bases used by CCS Division. CCS Division Help desk Network center Electronic mail Local voice support Activity Base Number of calls Number of devices monitored Number of user account Number of phone extension C. d. Assumed Cost 73,600 614,250 53,550 127,238 Assumed Activity Base Quantity 2,300 calls 9,450 devices 6,300 accounts 8,775 extensions One of the profit centers for ABC Company is the Calamba Branch. Assume the following data for Calamba Branch: a. The branch has 4,000 employees of which 50% are office employees. b. All the office employees have a phone and 90% of them have a computer on the network. Ninety percent of the employees with a computer also have an email account. The average number of help desk calls for March 20X2 was .50 call per individual with a computer. e. There are 300 additional printers, services, and peripherals on the network beyond the personal computers. REQUIRED: Determine the charges for Calamba branch for the four CCS Division service categories in March 20X2.
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