1.
Support Department Allocations And Cost Drivers
Varney Corporation, a manufacturer of electronics and
communications systems, allocates Computing and Communications
Services Department (CCS) costs to profit centers. The following
table lists the types of services and cost drivers for each
service. The table also includes the budgeted cost and quantity for
each service for August.
CCS
Services
Cost Drivers
Budgeted Cost
Budgeted Quantity
of Services
Help desk
Number of calls
$90,000
3,600
Network center
Number of devices
120,000
1,500
Electronic...