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.
CCS Service
Category
Activity Base
Assumed Cost Assumed Activity
Base Quantity
Help desk Number of calls $153,360 3,600
Network center Number of devices monitored 688,750 9,500
Electronic mail Number of user accounts 63,250 5,750
Local voice support Number of phone extensions 156,640 8,900
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 50% are office employees.
All the office employees have a phone, and 70% of them have a computer on the network.
90% 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 240 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. Round answers to the nearest cent.
CCS Service Category Service Charge Rate
Help desk: $fill in the blank 1
42.60
per call
Network center: $fill in the blank 3
72.50
per device monitored
Electronic mail: $fill in the blank 5
11.00
per e-mail account
Local voice support: $fill in the blank 7
17.60
per phone extension
b. Determine the charges to the Electronics sector for the four CCS service categories for February.
Help desk: $fill in the blank 9
Network center: $fill in the blank 10
Electronic mail: $fill in the blank 11
Local voice support: $fill in the blank 12