7) A company uses a service department charge system to bill profit centers for support services....

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7) A company uses a service department charge system to bill profit centers for support services. The following table identifies an abbreviated list of service categories, activity bases, and projected activity for one month used by the company. Budgeted activity base quantity Activity base Budgeted cost Service category Helpdesk number of calls $15,400 2,300 Network center number of devices monitored $95,200 2,800 Electronic mail number of user accounts $12,500 4,500 Local voice support number of phone extensions $12,500 2,100 The sales division of the company projects it will have 1,800 employees for the coming month. Of the total employees, 90% will work in the office. Of the 90% in the office, 92% will use computers. All employees with a computer will have an email account. The historical average number of helpdesk calls is 1.4 per computer user. There are 350 other devices (printers, servers, and peripherals) on the network beyond the user's computers. Required: a) Determine the service charge rate for each of the service categories for the month. Round each rate to three decimal places (10ths of a penny). b) Determine the total charges to the sales division for the month. Round the charges to whole dollars. Always record numbers of employees or numbers of devices to whole numbers rounded up. 7) A company uses a service department charge system to bill profit centers for support services. The following table identifies an abbreviated list of service categories, activity bases, and projected activity for one month used by the company. Budgeted activity base quantity Activity base Budgeted cost Service category Helpdesk number of calls $15,400 2,300 Network center number of devices monitored $95,200 2,800 Electronic mail number of user accounts $12,500 4,500 Local voice support number of phone extensions $12,500 2,100 The sales division of the company projects it will have 1,800 employees for the coming month. Of the total employees, 90% will work in the office. Of the 90% in the office, 92% will use computers. All employees with a computer will have an email account. The historical average number of helpdesk calls is 1.4 per computer user. There are 350 other devices (printers, servers, and peripherals) on the network beyond the user's computers. Required: a) Determine the service charge rate for each of the service categories for the month. Round each rate to three decimal places (10ths of a penny). b) Determine the total charges to the sales division for the month. Round the charges to whole dollars. Always record numbers of employees or numbers of devices to whole numbers rounded up.

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a Calculation of service charge rate Service Category Budgeted CostA Budgeted ActivityB Servi... View the full answer