2.

The accounting department of a large limousine company is analyzing the costs of its services. The cost data and level of activity for the past 16 months follow.

Month	Special Analyses		Customer Accounts			Paychecks Processed			Accounting Service Costs
1	4			190			1,150		$	58,000
2	1			300			1,290			60,800
3	4			240			1,170			58,300
4	4			330			1,150			59,400
5	1			340			970			60,600
6	2			220			1,140			60,500
7	4			200			1,300			59,200
8	3			220			1,020			61,900
9	1			240			900			61,800
10	1			220			1,060			60,300
11	2			270			980			60,700
12	1			210			1,000			59,500
13	2			200			800			60,800
14	3			170			1,260			59,800
15	3			200			850			60,800
16	3			200			1,200			61,900
Totals	39			3,750			17,240		$	964,300

In addition to the above information, you learn that the accounting department had the following total costs for the past 16 months for each of the following.

Total cost of paychecks processed	$	205,156
Total cost of maintaining customer accounts		113,625
Total cost of performing special analyses		154,050
Total fixed costs (total for 16 months)		491,469
Total costs	$	964,300

Required:

a-1. What is the cost per unit for paychecks processed?

a-2. What is the cost per unit for customer accounts maintained?

a-3. What is the cost per unit for special analyses performed?

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

1,000 paychecks processed.

170 customer accounts maintained.

3 special analyses.