Question

Harris 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 February.


One of the profit centers for Harris Corporation is the Electronics Systems sector. Assume the following information for the Electronics sector:
• The sector has 2,000 employees, of whom 60% are office employees.
• All the office employees have a phone, and all of them have a computer on the network.
• Ninety-five percent of the employees with a computer also have an e-mail account.
• The average number of help desk calls for February was 0.45 call per individual with a computer.
• There are 80 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 February.
b. Determine the charges to the Electronics sector for the four CCS service categories forFebruary.


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  • CreatedFebruary 04, 2014
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