OLA COSTOMDAVCHECKSIDIOCESSCC aera. ncuryuteusaisirskcnsecsakeonee $180,000 Total cost of maintaining CUSTOMEHACCOUNIS amonteo ae : 110,000 Total cost of performing special analySe€$ .......cccccccee creer 60,000 Total facilities-level costs (total for 16 months) ....... AA gunl 610,000 sTORENEE OSS atc arate rsepa Ta vac ON dae AME He UE Fant $960,000 What are the cost-driver rates for (1) paychecks processed, (2) customer accounts maintained, and

(3) special analyses performed?

c. Assuming the following level of cost-driver volumes for a month, what is the accounting department’s estimated costs of doing business using the account analysis approach?

1,000 paychecks processed 200 customer accounts maintained 3 special analyses

d. Insecurity Protection Services is considering outsourcing the processing of all paychecks.

Compared to your answer in requirement (c), how much would the accounting department save by outsourcing payroll (before considering the cost of outsourcing)?